The U.S. House of Representatives advanced a bill last week designed to expand access to workplace retirement plans, particularly for small businesses.
The Setting Every Community Up for Retirement Enhancement (SECURE) Act (H.R. 1994) seeks to improve the ability for employers to extend greater access to lifetime income options. It also requires retirement plans to provide participating workers with an illustration of how much monthly income a retirement savings account might deliver. Further, the bill raises the age to begin required minimum distributions from retirement accounts from 70 1/2 to 72.
“With passage of this bill, the House made significant progress in fixing our nation’s retirement crisis and helping workers of all ages save for their futures,” House Ways and Means Committee Chairman Richard Neal (D-MA) said. “The SECURE Act is a bipartisan success, filled with commonsense proposals authored by members from both sides of the aisle. The legislation closes loopholes and makes it easier for small business employees, home care workers, and long-term part-time workers to save for retirement. I’m also proud that we were able to incorporate a much-needed fix to reverse unfair and unexpected high taxes on Gold Star families, low-income scholarship recipients, and children of fallen first responders, among others. I encourage the Senate to follow our lead and swiftly pass this important bill that goes a long way in helping American families prepare for a financially secure retirement.”
The Insured Retirement Institute (IRI), a trade association that represents the retirement income industry, commended the passage.
“Americans face a retirement crisis of too little savings amplified by existing barriers that discourage and hamper the ability of small employers to offer a workplace retirement plan,” Wayne Chopus, IRI president and CEO, said. “Today’s vote demonstrates how Congress can work together on a bipartisan basis to advance common-sense solutions to help retire the retirement crisis.”
Neal and Reps. Kevin Brady (R-TX), Ron Kind (D-MN) and Mike Kelly (R-PA) were the leading proponents for the bill.
“Chairman Neal and Ranking Member Brady have demonstrated true leadership in shepherding this legislation first through committee and now the House,” Chopus said. “Congressman Kind and Congressman Kelly, two champions of retirement security, also were instrumental in rallying the broad bipartisan support that the SECURE Act needed to move through the process so quickly this year.”
The U.S. Senate is considering a bill – the Retirement Enhancement and Savings Act (S. 972) — that includes many of the same provisions as the SECURE Act.
“Too many Americans have anxiety about their retirement finances,” Chopus said. “Improving opportunities for workers to save, extending more access to lifetime income options and provide information to help savers make more-informed decisions about their finances, will boost Americans’ retirement confidence to help ensure they do not outlive their savings and can enjoy a secure and dignified retirement.”