A bipartisan group in Congress has reintroduced legislation aimed at making it easier for workers to roll over assets from employer-sponsored retirement plans and widen access to annuities for individuals age 50 and older. 

The proposed measure, known as the Retirement Simplification and Clarity Act, was reintroduced last week by Representative Jimmy Panetta (D-Calif.) and Representative Darin LaHood (R-Ill.). The bill would direct the Internal Revenue Service to simplify the process linked with the 402(f) notice, which employees receive when they leave an employer and seek a distribution from their 401(k) plans. According to Panetta’s office, the current process is seen as overly complicated for many participants. 

Under the revised legislation, the IRS would be required to provide plain-language explanations of all available distribution options, including rolling over savings to a new retirement plan or leaving them in place. Additionally, the bill seeks to broaden in-service rollover options by allowing workers age 50 and older to move funds from their employer-sponsored 401(k) accounts into annuities. 

The measure was first introduced by Panetta and LaHood in December of the previous year. It is supported by industry groups such as the American Council of Life Insurers and the National Association of Insurance and Financial Advisors, according to Panetta’s office. 

The legislation has been brought back in the context of the Department of Labor stepping back from its most recent fiduciary rule. That rule, which extended the definition of fiduciary duties to include financial professionals making recommendations on rollovers and annuity sales, faced legal challenges and has been put on hold. Last week, the Department asked the Fifth Circuit Court of Appeals to dismiss its appeal concerning the stays imposed on the rule in a consolidated lawsuit.