Health Care & Retirement Policy 2017 Agenda and Goals Chris Stephen Government Relations, Legislative Affairs April 2017

2017 Benefits Agenda Repeal the 2020 “Cadillac Tax” On “Tax Reform” - Preserve Current Tax Treatment for RS, 401(k) Plan and Group Benefits Trust Reduce PBGC Premiums By over 80%; saving over $30 million/year

Repeal “Cadillac Tax” In Context of “Obamacare Repeal and Replace”

“Cadillac Tax” Coalition Partners Representing Thousands of Private and Public Employers and Millions of Americans

GREAT RESULTS (So far . . . ) While the House GOP’s “American Health Care Act” has not moved forward yet, it DID NOT include any new, direct taxes on workers' employer-provided health benefit, and delayed the “Cadillac Tax” until 2025. However, we will continue to press lawmakers to fully repeal this unfair tax in any final Agreement.

“Don’t Tax My Health Benefits” On Captiol Hill we must use every tool at our disposal to preserve, protect and defend the availability and affordability of the benefit programs offered by America’s electric co-ops. As NRECA CEO Jim Matheson told the NRECA Board last month, we are pursuing an aggressive, anticipatory policy agenda for multiple scenarios and outcomes, and to prepare multiple pathways to victory. Co-ops must use every tool in our arsenal top achieve victory – Our great grassroots netwrk that you know very well at Action.coop Coops Vote – 2016 has been called the “rural awakening” And of course ACRE. ACRE supports Members of Congress who help us protect these important benefits in the face of rising costs and other obstacles. I know you will talking about ACRE over lunch, and thank you in advance!

“Tax Reform” Preserve, Protect and Defend “Special Tax Provisions”

What is the “Employee Exclusion”? Under current law, employer-paid premiums for health insurance are exempt from federal income and payroll taxes The original House GOP proposal would “cap” how much coverage a co- op could provide an employee before creating taxable income for the employee (payroll and income tax) AND for the co-op (payroll). Different from Cadillac Tax that would tax the employer above certain thresholds

Reminder – We Oppose Both!

Tax Expenditures, Fiscal Years 2015-2019 Projected dollars in billons Source: Joint Committee on Taxation, “Estimates of Federal Tax Expenditures for FY 2015-2019” (December 7, 2015)

Why is this an issue? “Why did you rob the banks, Willie?” “Because that’s where the money is.”

Using All Our Tools to Achieve Victory On Captiol Hill we must use every tool at our disposal to preserve, protect and defend the availability and affordability of the benefit programs offered by America’s electric co-ops. As NRECA CEO Jim Matheson told the NRECA Board last month, we are pursuing an aggressive, anticipatory policy agenda for multiple scenarios and outcomes, and to prepare multiple pathways to victory. Co-ops must use every tool in our arsenal top achieve victory – Our great grassroots netwrk that you know very well at Action.coop Coops Vote – 2016 has been called the “rural awakening” And of course ACRE. ACRE supports Members of Congress who help us protect these important benefits in the face of rising costs and other obstacles. I know you will talking about ACRE over lunch, and thank you in advance!

Reduce PBGC Premiums Align our PBGC Premiums with our CSEC Funding Rules

. . . .Even though it’s NOT US!

“I’m here from the Government and I am here to help . . . ”