The American Council of Life Insurers (ACLI) voiced its support for the Retirement Enhancement and Savings Act (RESA), a bill designed to increase opportunities for people to participate in employer-provided retirement plans.
The Retirement Enhancement and Savings Act (RESA) of 2019 would remove restrictions on the types of employers that can band together in a Multiple Employer Plan. It would also permit plan participants to preserve their lifetime income investments and avoid charges and fees when an employer changes recordkeepers. Further, the bill would mandate that lifetime monthly income estimates be provided on benefit statements. Finally, RESA would lift the auto enrollment safe harbor cap and the cap requiring automatic escalation of employee deferrals to no higher than 10 percent of employee pay.
The bill was introduced by Reps. Ron Kind, (D-WI) and Mike Kelly, (R-PA). ACLI President and CEO Susan Neely today urged Congress to pass this legislation.
“As society and work changes, [life insurers] are committed to solutions that protect all Americans, regardless of where and how they work, their stage in life, or the economic status of their household. Americans are living longer, and financial security into retirement is a big challenge facing our country,” Neely said.
The bill was first introduced in the 115th Congress but failed to gain approval. Neely hopes it is different in this new Congress.
“While RESA was not enacted during the 115th Congressional session, it remains the bedrock of innovative and thoughtful proposals that have the potential to increase retirement savings for Americans. As the 116th Congress considers next steps in the retirement security space, it is imperative that they take action and pass RESA as soon as possible,” Neely said.