One week after the House passed SECURE 2.0, the House Education and Labor Committee advanced The Protecting America’s Retirement Security Act (H.R. 7310) on Tuesday. It purports to strengthen the retirement system to protect workers’ retirement savings and better support families and employers.
“Just last week, the House overwhelmingly passed legislation that would make key improvements to our retirement system.”
Chairman Bobby Scott
It advanced the bill by a vote of 29-21, with 0 Republicans in favor.
“We all agree that workers in this country deserve to retire with security. Just last week, the House overwhelmingly passed legislation that would make key improvements to our retirement system,” Chairman Robert “Bobby” Scott, D-Va., said. “Now, the Protecting America’s Retirement Security Act provides us an opportunity to build on that progress and continue to help workers, families, and employers. This bill takes important steps to help Americans plan and save for a dignified retirement.”
A high-profile bill provision would create spousal consent requirements before significant assets could be taken from the plan, similar to defined benefit pension plans.
Other provisions
401k Plan Fee Disclosures: A 2020 Government Accountability Office report revealed that almost 40% of 401k plan participants do not fully understand the fees they are paying on their retirement accounts, with many unaware they are even paying fees.
Financial Literacy: Many of our nation’s workers, particularly recent college graduates, would benefit from additional financial literacy skills to help them learn more about saving for retirement and managing other costs, such as student loan repayments.
Automatic Reenrollment in 401k Plans: Automatic reenrollment in 401k plans provides employees who have opted out a second chance to enroll in their workplace retirement plan and start saving for their future.
Employee Ownership Initiatives: Employee ownership is a crucial tool to prevent job loss, improve retention, and boost productivity when business owners retire.
Emergency Savings: According to the Federal Reserve, 40% of American families do not have enough emergency savings to pay for an unexpected expense, such as a flat tire or a burst pipe, greater than $400.