A bill was introduced in the House this week that would make several enhancements to the U.S. retirement system to help workers better plan and save for retirement.
The Retirement Improvement and Savings Enhancement (RISE) Act (H.R. 5891) would establish an online, searchable “Retirement Lost and Found” database at the Department of Labor to help workers locate their retirement savings as they move from job to job. Also, it would allow 403(b) retirement plans to participate in multiple employer plans and pooled employer plans.
In addition, it seeks to ensure that more part-time workers are offered opportunities to join retirement savings plans.
Also, the RISE Act would change the rules regarding the recovery of inadvertent overpayments to retirees, minimizing hardships, and enable employers to provide small financial incentives, such as low-dollar gift cards, to incentivize workers’ participation in retirement plans. Finally, the bill would simplify and clarify reporting and disclosure requirements related to retirement plans.
“We have a responsibility to create an economy where American workers can retire with dignity and security,” said Rep. Bobby Scott (D-VA), chair of the Education and Labor Committee and one of the billʻs sponsors. “Unfortunately, far too many older Americans are working later in their lives and still relying on their next paycheck to cover monthly expenses. The RISE Act is a bipartisan proposal that will help Americans prepare for, and achieve, the secure retirement they deserve. This legislation makes meaningful improvements to our retirement system, including making it easier for workers to track their retirement savings when they switch jobs, providing employers more tools to encourage their workers to participate in retirement plans, and expanding access to retirement plans for part-time workers. These policies are a step in the right direction toward a more secure retirement for workers and their families.”
It was also sponsored by Rep. Virginia Foxx (R-NC), ranking member on the Education and Labor Committee, along with Rep. Mark DeSaulnier (D-CA), chair of the Health, Employment, Labor, and Pensions (HELP) Subcommittee, and Rep. Rick Allen (R-GA), ranking member on the HELP subcommittee.
“It is crucial to help Americans better prepare for retirement, and this is exactly what the RISE Act does,” Foxx said. “Improving saving opportunities for workers is an important bipartisan priority. We all want to see Americans enter retirement more secure and more prepared. This bipartisan legislation will help empower both workers and employers to work in tandem towards a better and more secure future.”