[Congressional Record Volume 165, Number 79 (Monday, May 13, 2019)]
[Senate]
[Pages S2790-S2791]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. WYDEN (for himself, Ms. Cantwell, Mr. Cardin, Mr.
Whitehouse, Mr. Brown, and Ms. Hassan):
S. 1428. A bill to amend the Internal Revenue Code of 1986 to permit
treatment of student loan payments as elective deferrals for purposes
of employer matching contributions, and for other purposes; to the
Committee on Finance.
Mr. WYDEN. Mr. President, today I have introduced the Retirement
Parity for Student Loans Act. This legislation would permit employers
to make matching contributions to workers under 401(k) and similar
types of retirement plans as if worker student loan payments were
salary reduction contributions to the retirement plan. This legislation
will help workers who cannot afford to both save for retirement and pay
off their student loan debt by providing them with employer
contributions to build their retirement savings. This legislation is a
common sense fix to our nation's laws that govern employer-sponsored
retirement plans and I urge my colleagues to support this legislation.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 1428
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Retirement Parity for
Student Loans Act''.
SEC. 2. TREATMENT OF STUDENT LOAN PAYMENTS AS ELECTIVE
DEFERRALS FOR PURPOSES OF MATCHING
CONTRIBUTIONS.
(a) In General.--Subparagraph (A) of section 401(m)(4) of
the Internal Revenue Code of 1986 is amended by striking
``and'' at the end of clause (i), by striking the period at
the end of clause (ii) and inserting ``, and'', and by adding
at the end the following new clause:
``(iii) subject to the requirements of paragraph (13), any
employer contribution made to a defined contribution plan on
behalf of an employee on account of a qualified student loan
payment.''.
(b) Qualified Student Loan Payment.--Paragraph (4) of
section 401(m) of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subparagraph:
``(D) Qualified student loan payment.--The term `qualified
student loan payment' means a payment made by an employee in
repayment of a qualified education loan (as defined in
section 221(d)(1)) incurred to pay qualified higher education
expenses of the employee, but only--
``(i) to the extent such payments in the aggregate for the
year do not exceed an amount equal to--
``(I) the limitation applicable under section 402(g) for
the year (or, if lesser, the employee's compensation (as
defined in section 415(c)(3)) for the year), reduced by
``(II) the elective deferrals made by the employee for such
year, and
``(ii) if the employee certifies to the employer making the
matching contribution under this paragraph that such payment
has been made on such loan.
For purposes of this subparagraph, the term `qualified higher
education expenses' means the cost of attendance (as defined
in section 472 of the Higher Education Act of 1965, as in
effect on the day before the date of the enactment of the
Taxpayer Relief Act of 1997) at an eligible educational
institution (as defined in section 221(d)(2)).''.
(c) Matching Contributions for Qualified Student Loan
Payments.--Subsection (m) of section 401 of the Internal
Revenue Code of 1986 is amended by redesignating paragraph
(13) as paragraph (14), and by inserting after paragraph (12)
the following new paragraph:
``(13) Matching contributions for qualified student loan
payments.--
``(A) In general.--For purposes of paragraph (4)(A)(iii),
an employer contribution made to a defined contribution plan
on account of a qualified student loan payment shall be
treated as a matching contribution for purposes of this title
if--
``(i) the plan provides matching contributions on account
of elective deferrals at the same rate as contributions on
account of qualified student loan payments,
``(ii) the plan provides matching contributions on account
of qualified student loan payments only on behalf of
employees otherwise eligible to make elective deferrals, and
``(iii) under the plan, all employees eligible to receive
matching contributions on account of elective deferrals are
eligible to receive matching contributions on account of
qualified student loan payments.
``(B) Treatment for purposes of nondiscrimination rules,
etc.--
``(i) Nondiscrimination rules.--For purposes of
subparagraph (A)(iii), subsection (a)(4), and section 410(b),
matching contributions described in paragraph (4)(A)(iii)
shall not fail to be treated as available to an employee
solely because such employee does not have debt incurred
under a qualified education loan (as defined in section
221(d)(1)).
``(ii) Student loan payments not treated as plan
contribution.--Except as provided in clause (iii), a
qualified student loan payment shall not be treated as a
contribution to a plan under this title.
``(iii) Matching contribution rules.--Solely for purposes
of meeting the requirements of paragraph (11)(B) or (12) of
this subsection, or paragraph (11)(B)(i)(II), (12)(B), or
(13)(D) of subsection (k), a plan may treat a qualified
student loan payment as an elective deferral or an elective
contribution, whichever is applicable.''.
(d) Simple Retirement Accounts.--Paragraph (2) of section
408(p) of the Internal Revenue Code of 1986 is amended by
adding at the end the following new subparagraph:
``(F) Matching contributions for qualified student loan
payments.--
``(i) In general.--Subject to the rules of clause (iii), an
arrangement shall not fail to be treated as meeting the
requirements of subparagraph (A)(iii) solely because under
the arrangement, solely for purposes of such subparagraph,
qualified student loan payments are treated as amounts
elected by the employee under subparagraph (A)(i)(I) to the
extent such payments do not exceed--
``(I) the applicable dollar amount under subparagraph (E)
(after application of section 414(v)) for the year (or, if
lesser, the employee's compensation (as defined in section
415(c)(3)) for the year), reduced by
``(II) any other amounts elected by the employee under
subparagraph (A)(i)(I) for the year.
``(ii) Qualified student loan payment.--For purposes of
this subparagraph--
``(I) In general.--The term `qualified student loan
payment' means a payment made by an employee in repayment of
a qualified education loan (as defined in section 221(d)(1))
incurred to pay qualified higher education expenses of the
employee, but only if the employee certifies to the employer
making the matching contribution that such payment has been
made on such a loan.
``(II) Qualified higher education expenses.--The term
`qualified higher education expenses' has the same meaning as
when used in section 401(m)(4)(D).
``(iii) Applicable rules.--Clause (i) shall apply to an
arrangement only if, under the arrangement--
``(I) matching contributions on account of qualified
student loan payments are provided only on behalf of
employees otherwise eligible to elect contributions under
subparagraph (A)(i)(I), and
``(II) all employees otherwise eligible to participate in
the arrangement are eligible to receive matching
contributions on account of qualified student loan
payments.''.
(e) 403(b) Plans.--Subparagraph (A) of section 403(b)(12)
of the Internal Revenue Code of 1986 is amended by adding at
the end the following: ``The fact that the employer offers
matching contributions on account of qualified student loan
payments as described in section 401(m)(13) shall not be
taken into account in determining whether the arrangement
satisfies the requirements of clause (ii) (and any regulation
thereunder).''.
(f) 457(b) Plans.--Subsection (b) of section 457 of the
Internal Revenue Code of 1986 is amended by adding at the end
the following: ``A plan which is established and maintained
by an employer which is described in subsection (e)(1)(A)
shall not be treated as failing to meet the requirements of
this subsection solely because the plan, or another plan
maintained by the employer which meets the requirements of
section 401(a), provides for matching contributions on
account of qualified student loan payments as described in
section 401(m)(13).''.
(g) Regulatory Authority.--The Secretary shall prescribe
regulations for purposes of implementing the amendments made
by this section, including regulations--
(1) permitting a plan to make matching contributions for
qualified student loan payments, as defined in sections
401(m)(4)(D) and 408(p)(2)(F) of the Internal Revenue Code of
1986, as added by this section, at a different frequency than
matching contributions are otherwise made under the plan,
provided that the frequency is not less than annually,
(2) permitting employers to establish reasonable procedures
to claim matching contributions for such qualified student
loan payments under the plan, including an annual deadline
(not earlier than 3 months after the close of each plan year)
by which a claim must be made, and
(3) promulgating model amendments which plans may adopt to
implement matching contributions on such qualified student
loan payments for purposes of sections 401(m), 408(p),
403(b), and 457(b) of the Internal Revenue Code of 1986.
(h) Effective Date.--The amendments made by this section
shall apply to contributions made for years beginning after
December 31, 2019.
______
By Mr. SCHUMER (for Mr. Brown (for himself, Ms. Klobuchar, and
Mr. Blunt)):
S. 1436. A bill to make technical corrections to the computation of
average pay under Public Law 110-279; considered and passed.
[[Page S2791]]
S. 1436
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. TECHNICAL CORRECTIONS TO COMPUTATION OF AVERAGE
PAY UNDER PUBLIC LAW 110-279.
(a) In General.--Section 1(c)(2)(A) of Public Law 110-279
(2 U.S.C. 2051(c)(2)(A)) is amended--
(1) by striking ``For purposes of'' and all that follows
through ``(i) any period'' and inserting the following:
``(i) Treatment of service.--For purposes of chapters 83,
84, and 87 of title 5, United States Code, any period'';
(2) in clause (i), by striking ``; and'' and inserting a
period; and
(3) in clause (ii)--
(A) by inserting ``Treatment of pay.--For purposes of
chapter 87 of title 5, United States Code,'' before ``the
rate of basic pay''; and
(B) by striking ``the covered'' and inserting ``a
covered''.
(b) Regulations.--
(1) In general.--The Director of the Office of Personnel
Management shall promulgate regulations to carry out this
section.
(2) Effective date.--The regulations promulgated under
paragraph (1) shall take effect not later than 180 days after
the date of enactment of this Act.
(c) Applicability of Amendments.--
(1) Definitions.--In this subsection, the terms
``contractor'', ``covered individual'', and ``food services
contract'' have the meanings given those terms in section
1(a) of Public Law 110-279 (2 U.S.C. 2051(a)).
(2) Applicability.--The amendments made by this section
shall apply with respect to--
(A) a covered individual who separates from service as an
employee of a contractor performing services under the food
services contract before, on, or after the date of enactment
of this Act; and
(B) each payment to a covered individual under chapter 83
or 84 of title 5, United States Code, made on or after the
effective date of the regulations promulgated under
subsection (b).
______
By Mr. DURBIN (for himself, Mr. Grassley, Mr. King, and Mr.
Alexander):
S. 1437. A bill to amend title XI of the Social Security Act to
require that direct-to-consumer advertisements for prescription drugs
and biological products include truthful and non-misleading pricing
information; to the Committee on Finance.
Mr. DURBIN. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 1437
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Drug-price Transparency in
Communications (DTC) Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Direct-to-consumer advertising of prescription
pharmaceuticals is legally permitted in only 2 developed
countries, the United States and New Zealand.
(2) In 2018, pharmaceutical ad spending exceeded
$6,046,000,000, a 4.8-percent increase over 2017, resulting
in the average American seeing 9 drug advertisements per day.
(3) In 2015, pharmaceutical companies spent more than
$100,000,000 on advertising with respect to each of the 16
most advertised brand-name drugs and biological products,
primarily new and relatively high-cost medications.
(4) The 10 most commonly advertised drugs have list prices
ranging from $535 to $11,000 per 30-day supply or usual
course of therapy.
(5) According to a 2011 Congressional Budget Office report,
direct-to-consumer advertising is used to promote only a
small set of specific drugs, typically the expensive, brand-
name medications. And the top-selling drugs in any given year
are frequently among the drugs with the largest expenditures
for direct-to-consumer advertising.
(6) According to a 2011 Congressional Budget Office report,
pharmaceutical manufacturers advertise their products
directly to consumers in an attempt to boost demand for their
products and thereby raise the price that consumers are
willing to pay, increase the quantity of drugs sold, or
achieve some combination of the two.
(7) Studies show that patients are more likely to ask their
doctor for a specific medication and for the doctor to write
a prescription for it, if a patient has seen an advertisement
for such medication, regardless of whether the medication is
clinically appropriate for the patient or whether a lower-
cost generic may be available.
(8) According to a 2011 Congressional Budget Office report,
the average number of prescriptions written for newly
approved brand-name drugs with direct-to-consumer advertising
was 9 times greater than the average number of prescriptions
written for newly approved brand-name drugs without direct-
to-consumer advertising.
(9) Approximately half of Americans have high-deductible
health plans, under which they often pay the list price of a
drug until their insurance deductible is met. All of the top
Medicare prescription drug plans use coinsurance rather than
fixed-dollar copayments for medications on nonpreferred drug
tiers.
(10) The Centers for Medicare & Medicaid Services is the
single largest drug payer in the Nation. Drug price inflation
accounts for a significant portion of the 22-percent, 32-
percent, and 42-percent growth in Medicare parts D and B and
Medicaid expenditures, respectively, on a per beneficiary
basis between 2013 and 2016.
(11) The 20 most advertised drugs on television cost
Medicare and Medicaid a combined $24,000,000,000 in 2017.
(12) Price shopping is the mark of rational economic
behavior, and markets operate more efficiently when consumers
have relevant information about a product, including its
price, before making an informed decision about whether to
buy that product.
(13) The American Medical Association has passed
resolutions supporting the requirement for price transparency
in any direct-to-consumer advertising.
(14) The Kaiser Family Foundation found that 88 percent of
the public favors the Federal Government requiring
prescription drug advertisements to include a statement on
how much the drug costs.
(15) Pursuant to its existing authority under sections 1102
and 1871 of the Social Security Act, on May 10, 2019, the
Centers for Medicare & Medicaid Services published
regulations (subpart L of part 403 of title 42, Code of
Federal Regulations) to require direct-to-consumer television
advertisements of prescription drugs and biological products
for which payment is available through or under Medicare or
Medicaid to include the wholesale acquisition cost of that
drug or biological product.
(16) To support the permanence and clarity of this policy,
and to facilitate future planning, Congress finds a benefit
to codifying such regulation.
SEC. 3. REQUIREMENT THAT DIRECT-TO-CONSUMER ADVERTISEMENTS
FOR PRESCRIPTION DRUGS AND BIOLOGICAL PRODUCTS
INCLUDE TRUTHFUL AND NON-MISLEADING PRICING
INFORMATION.
Part A of title XI of the Social Security Act is amended by
adding at the end the following new section:
``requirement that direct-to-consumer advertisements for prescription
drugs and biological products include truthful and non-misleading
pricing information
``Sec. 1150C. (a) In General..--The Secretary shall
require that each direct-to-consumer advertisement for a
prescription drug or biological product for which payment is
available under title XVIII or XIX includes an appropriate
disclosure of truthful and non-misleading pricing information
with respect to the drug or product.
``(b) Determination by CMS.--The Secretary, acting through
the Administrator of the Centers for Medicare & Medicaid
Services, shall determine the components of the requirement
under subsection (a), such as the forms of advertising, the
manner of disclosure, the price point listing, and the price
information for disclosure.''.
____________________