The House of Representatives passed H.R. 2954 ‘‘Securing a Strong Retirement Act of 2022,’’ also known as SECURE 2.0, on Tuesday.
Initially delayed until late afternoon due to a memorial service for Rep. Don Young (R-Alaska), who died earlier this month, the bill passed by a vote of 414 – 5, with the nays from Republicans.
Proponents and supporters were pleased.
“Our efforts will now shift to the Senate to continue the positive momentum and get a bill to President Biden this year.”
“Today the U.S. House of Representatives passed one of IRI’s primary public policy objectives–a retirement bill that further expands access to workplace retirement plans and protected lifetime income products,” Wayne Chopus, President and CEO, Insured Retirement Institute, said in a statement. “The bipartisan legislation will deliver measurable benefits to America’s workers and retirees who have anxiety over whether they will have sufficient retirement income that lasts throughout their golden years. Our efforts will now shift to the Senate to continue the positive momentum and get a bill to President Biden this year.”
Senate support
U.S. Senators Rob Portman, R-Ohio, and Ben Cardin D-Md., praised the House for passing the Act. Portman and Cardin are cosponsoring companion legislation in the Senate.
“Americans need to save more so they can retire with the dignity and stability they deserve. It’s an ongoing struggle. We are encouraged with the ongoing bipartisan and bicameral interest in necessary reforms that will help more Americans save more for retirement,” the Senators said in a statement. “We will continue to support solutions that help increase savings, expand access to retirement plans for working families, and promote lifetime income solutions.
Calling it an area of broad, bipartisan consensus, they added that they “look forward to working with Chairman Wyden, Ranking Member Crapo, and our House colleagues to move this legislation through the Finance Committee as swiftly as possible so that it can get to the president’s desk.”
SECURE 2.0’s proposals include:
No. 1: Increasing retirement savings through automatic enrollment, new incentives, and expanded coverage:
- Promotes saving for retirement earlier by expanding automatic enrollment in 401k and 403b retirement plans
- Creates a new financial incentive for small businesses to offer retirement plans
- Increases and modernizes the existing federal tax credit for contributions to a retirement plan or IRA (the Saver’s Credit)
- Allows Americans to save for retirement longer by increasing the required minimum distribution age to 75
- Makes it easier for military spouses to save for retirement by offering small employers a new financial incentive that boosts retirement plan participation by making military spouses eligible for plan participation quicker, increasing eligibility of matching or nonelective contributions, and making military spouses 100% vested in all employer contributions
- Improves coverage for part-time workers in 401(k) plans
No. 2: Encouraging more flexibility for Americans’ retirement options:
- Expands retirement savings options for non-profit employees by allowing groups of non-profits to join together to offer retirement plans to their employees
- Offers individuals 50 and older the ability to set aside greater savings as they approach retirement
- Permits individuals the choice to pay down a student loan instead of contributing to a 401(k) plan, while still promoting increased retirement savings through an employer match in their retirement plan
- Increases charitable donations permitted through an individual’s IRA
No. 3: Protecting Americans’ retirement accounts:
- Safeguards innocent retirees who unknowingly receive retirement plan overpayments
- Creates a national online searchable Retirement Savings Lost & Found Database at the Department of Labor for workers and retirees to find their lost retirement accounts
READ THE FULL BILL HERE