Category: Pell Grant

  • Retirement Plan Changes and Workplace Protections for Pregnant Workers Included in Fiscal Year 2023 Omnibus Bill – CUPA-HR

    Retirement Plan Changes and Workplace Protections for Pregnant Workers Included in Fiscal Year 2023 Omnibus Bill – CUPA-HR

    by CUPA-HR | January 10, 2023

    On December 29, 2022, President Biden signed the $1.7 trillion Consolidated Appropriations Act of 2023 (omnibus bill) to fund the federal government through fiscal year 2023 (FY 2023). Given the “must-pass” nature of the bill, the omnibus bill also served as a vehicle for policy unrelated to government funding that was unlikely to pass as a standalone bill in Congress. Below outlines some of the highlights that will impact higher education generally and human resources specifically.

    SECURE 2.0

    Notably, the new law includes changes to the access and use of individual retirement funds. Provisions from a package of retirement-related bills, referred to as SECURE 2.0, were ultimately included in the final omnibus package. Specifically, the new law included the following provisions, in addition to others not listed here:

    • Automatic 401(k) and 403(b) plan enrollment: The new law requires employers to automatically enroll employees into newly created 401(k) and 403(b) retirement plans at a rate between 3 to 10 percent of eligible wages. Employees will then have the option to opt out of the enrollment. Employers with 10 or fewer employees and companies in business for less than three years are excluded from this requirement.
    • Expanded eligibility for part-time employees: The law requires employers to provide the option to participate in employer retirement plans for part-time employees who work between 500 and 999 hours for at least two consecutive years (lowered from three consecutive years previously required).
    • Emergency expenses and savings accounts: Employees would be allowed to withdraw up to $1,000 from retirement accounts for qualified emergency expenses without facing early withdrawal penalties if the worker is under 59.5 years old. Additionally, the law allows employers to offer employees an emergency savings account through payroll deductions for amounts up to $2,500.
    • Matching employer contributions for student loan payments: Employers will be allowed to make contributions to their company retirement plan on behalf of employees who are paying student loans and are not contributing to a retirement account as a result.
    • Roth treatment of employer contributions: The new law grants employers the option to amend their retirement plans and allow employees to choose their employer’s matching and non-elective contributions to be made as Roth contributions.
    • Multiple Employer and Pooled Employer Plans for 403(b) plans: The new law allows employers to participate in Multiple Employer Plans (MEPs) and Pooled Employer Plans (PEPs) for 403(b) plans.

    The final law also included several changes to individual activity with respect to their retirement plans, including an increase to the “catch-up” contribution limits of up to $10,000 for older retirement savers and an increase to the age an individual is required to begin taking minimum distributions from their retirement accounts, which is now effective at age 73 and effective at age 75 effective in 2033.

    Workplace Protections for Pregnant Workers

    Additionally, Congress was able to agree on the inclusion of the Pregnant Workers Fairness Act (PWFA) and the Providing Urgent Maternal Protections (PUMP) for Nursing Mothers in the omnibus bill.

    Pregnant Workers Fairness Act

    Passed by the House in May 2021, the PWFA specifically declares that it is an unlawful employment practice for employers with 15 or more employees to do any of the following:

    • fail to make reasonable accommodations to known limitations of such employees unless the accommodation would impose an undue hardship on an entity’s business operation;
    • require a qualified employee affected by such condition to accept an accommodation other than any reasonable accommodation arrived at through an interactive process;
    • deny employment opportunities based on the need of the entity to make such reasonable accommodations to a qualified employee;
    • require such employees to take paid or unpaid leave if another reasonable accommodation can be provided; or
    • take adverse action in terms, conditions or privileges of employment against a qualified employee requesting or using such reasonable accommodations.

    Though the bill enjoyed bipartisan support in both the House and Senate, Republicans opposed bringing the bill to a Senate vote without the inclusion of a religious exemption for employers. Such exemptions were provided in the omnibus bill’s version of the PWFA, ultimately helping lead to its passage.

    PUMP for Nursing Mothers Act

    The PUMP for Nursing Mothers Act passed the House of Representatives in October 2021 with bipartisan support. The bill aims to amend the Fair Labor Standards Act (FLSA) to expand access to breastfeeding accommodations in the workplace for lactating employees and builds upon existing protections in the 2010 Breaktime for Nursing Mothers Act by broadening breastfeeding accommodations and workplace protections. In the new law, the PUMP for Nursing Mothers Act is expanded to include salaried employees exempt from overtime pay requirements under the FLSA as well as other categories of employees currently exempt from such protections, such as teachers, nurses and farmworkers. It also clarifies that break time provided under this bill is considered compensable hours worked so long as the worker is not completely relieved of duty during such breaks, and it ensures remedies for nursing mothers for employer violations of the bill.

    Similar to the PWFA, the PUMP for Nursing Mothers Act did not reach a Senate floor vote, leaving the omnibus bills as one of the last options for passage before the 117th Congress’s term expired.

    Immigration Provisions

    Due to the situation at the southern border, the new law excluded any major immigration overhauls, such as the Equal Access to Green cards for Legal Employment (EAGLE) Act, which would have addressed the immigration visa backlog and made changes to the H-1B visa program. Additionally, protections for the Deferred Action for Childhood Arrivals (DACA) program and Dreamers that have been threatened by recent court decisions were not included in the final bill enacted into law.

    Despite the exclusion of important reforms, the new law reauthorized several expiring immigration programs that are already utilized by institutions of higher education, including additional funds for the E-Verify program.

    Higher Education Funding

    Several provisions were included in the omnibus package that will increase funding for a variety of higher education programs. Notably, the bill includes a $500 increase to the maximum Pell Grant a recipient can receive, raising the total to $7,395 for the 2023-24 award year. Additionally, the bill included funding increases for Federal Work-Study grants, Title III and V programs, Postsecondary Student Success Grants, and the TRIO and GEAR UP programs.

    CUPA-HR will continue to analyze the provisions included in the FY 2023 funding bill and will keep members apprised of any additional noteworthy provisions included in the law.



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  • DOL Secretary Testifies in House and Senate Committee Hearings – CUPA-HR

    DOL Secretary Testifies in House and Senate Committee Hearings – CUPA-HR

    by CUPA-HR | June 22, 2022

    On June 14 and 15, the House Education and Labor Committee and Senate Appropriations Committee’s Subcommittee on Labor, Health and Human Services, Education, and Related Agencies held hearings on policies and priorities of the U.S. Department of Labor (DOL), as well as President Biden’s Fiscal Year 2023 Budget Request for DOL. In both hearings, Secretary of Labor Marty Walsh testified and answered questions about DOL’s regulations and actions, as well as potential future funding for programs under DOL.

    In both hearings, Walsh pointed to the accomplishments DOL has achieved during the Biden administration. He discussed efforts to increase the minimum wage for federal contractors to $15 and to protect workers’ organizing rights as some of the highlights of the department’s work during the Biden administration thus far. In addition to these accomplishments, he also called for increased funding and investments for workforce training and development.

    During the House committee hearing, Walsh was asked several questions about the anticipated overtime regulations. Rep. Mark Takano (D-CA) began his question period by restating his request for DOL to increase the minimum salary threshold to $82,732 by 2026, and asked Walsh his opinion on the current level and whether it was too high or low. Walsh responded saying he had no opinion on where the current level stands at this time, but that the department recently concluded listening sessions to hear from stakeholders about their opinions on updating the salary threshold. Additionally, Takano asked Walsh if there was a timeline of when the anticipated Notice of Proposed Rulemaking (NPRM) would be released for the overtime regulations, but Walsh responded that there was no set timeline at the time of the hearing.

    Many representatives and senators also discussed DOL’s workforce development and training programs. In the Senate hearing, Walsh explained that the current disconnect between youth and job openings is an opportunity for DOL to reach out and connect with those workers, better preparing them for the jobs available. Walsh also expressed his support for a wide range of apprenticeships in different, untraditional industries, and he stated DOL should partner with community colleges, existing workforce development programs, and other organizations to expand apprenticeships.

    CUPA-HR will keep members apprised of any developments that arise as a result of these hearings.



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  • CUPA-HR Participates in Hill Meetings With House Ways and Means Committee Member Offices – CUPA-HR

    CUPA-HR Participates in Hill Meetings With House Ways and Means Committee Member Offices – CUPA-HR

    by CUPA-HR | May 10, 2022

    Over the last month, CUPA-HR’s government relations team joined the American Council on Education (ACE) and other higher education organizations in virtual Capitol Hill meetings to discuss tax priorities for the higher education community. Meetings have been held with staffers of Members of the House Ways and Means Committee to advocate for tax policies and proposals to alleviate various burdens placed on students, employees and institutions alike.

    Specifically, the meetings have allowed the higher education community to encourage members’ action on the following issues:

    • Supporting the extension and expansion of the universal, non-itemizer charitable deduction;
    • Repealing the taxability of scholarships and grant aid, specifically for the Pell Grant and other scholarships for graduate and medical students;
    • Enhancing higher ed tax credits like the American Opportunity Tax Credit and the Lifetime Learning Credit;
    • Repealing the endowment tax;
    • Expanding and modernizing tax-free employer-provided educational assistance as granted under Section 127 of the Internal Revenue Code (IRC);
    • Reinstating advance refunding of tax-exempt bonds and expanding debt issuance with a Direct Pay Bonds program;
    • Creating “lifelong learning and training accounts” to provide workers and employers the opportunity to make tax-free contributions to pay for future training and credentials; and
    • Repealing the unrelated business income tax “basketing” provision.

    In June 2021, ACE sent a letter to House Ways and Means Committee and Senate Finance Committee leadership requesting these proposals and others be included in the American Jobs and American Families Plans. CUPA-HR signed onto this letter, along with several other higher education groups.

    CUPA-HR joined the most recent meetings specifically to advocate for the Section 127 expansion and modernization. Section 127 of the IRC is an educational assistance program that allows employers to pay or reimburse an employee tuition or student loan repayments on a tax-free basis up to $5,250. CUPA-HR previously advocated for the program to include student loan repayments, which was granted under the 2020 CARES Act and the Consolidated Appropriations Act of 2021, as well as to increase the annual exclusion cap of $5,250 to an amount closer to $12,000, to expand coverage to employee’s partners and dependents, and to expand coverage to gig workers and independent contractors, all of which were a focus during the meetings.

    CUPA-HR will continue to participate in these meetings and will keep members apprised of any legislative proposals that result from these meetings.



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