Legislative Roundup

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Earlier this year, several NARFE-endorsed bills saw movement in the House and Senate.

On March 29, the House passed the SECURE Act 2.0, H.R. 2954, with overwhelming bipartisan support, 414-5. This bill would increase the limit on catch-up contributions to certain retirement plans, such as the Thrift Savings Plan (TSP), and increase the required minimum distribution (RMD) age, among other changes. For those ages 62 to 64 who are enrolled in employer-sponsored retirement plans, SECURE Act 2.0 increases the catch-up contribution limits from $6,500 to $10,000, though it would restrict them to certain contributions.

Additionally, the RMD age would increase over the course of a decade, making the initial age for RMDs 72 starting in 2023, 74 starting in 2030 and 75 starting in 2033. As of press time, the Senate had not yet considered the bill.

Both the Senate Committee on Homeland Security and Governmental Affairs (HSGAC) and the House Committee on Oversight and Reform (COR) advanced the Honoring Civil Servants Killed in the Line of Duty Act, S. 3487/H.R. 7376, in February and April, respectively. The legislation was introduced by Sen. Krysten Sinema, D-AZ, and Rep. Gerry Connolly, D-VA, in each chamber.

The bill would increase the death gratuity paid to survivors of federal employees who perish while performing their jobs from $10,000 to $100,000, while simultaneously increasing the funeral allowance from $800 to $8,800. The previous amounts were set back in 1997 and 1966, respectively. The legislation would also tie these new figures with inflation.

Both HSGAC and COR advanced the bill with bipartisan support earlier this year, though the committee vote to advance the bill through COR included some minority dissent, with a 26-14 vote tally. At press time, the legislation awaited consideration by both chambers of Congress.

The Chance to Compete Act, S.3423/H.R.6967, aims to improve the way federal agencies evaluate and hire candidates by utilizing subject matter experts earlier in the vetting and qualification process, sharing assessments, and focusing more on the individual’s experience and skill set versus a college degree. It would also enhance transparency.

Sen. Sinema introduced the Senate version, which HSGAC approved in February. Rep. Jody Hice, R-GA, introduced the House version, which COR unanimously approved via voice vote in April.

As of press time, the Chance to Compete Act was set for

Military retirement income is subtracted from Missouri Adjusted Gross Income and is not subject to Missouri income tax. Public pensions are exempt from income tax up to the maximum social security benefit allowed, which, in the 2021 tax year, is $39,365 per taxpayer. The income limitations are $85,000 in Missouri Adjusted Gross Income for S, HH, MFS or QW; and $100,000 in Missouri Adjusted Gross Income for Married Filing Combined.