Tuesday’s election could be a big X-factor in whether or not the new “SECURE 2.0” retirement reform bill introduced last week could be fast-tracked across the finish line, perhaps even before the end of this year.
Last Tuesday, Ways and Means Committee Chairman Richard Neal, (D-MA), and Ranking Member Kevin Brady, (R-TX), introduced the Securing a Strong Retirement Act of 2020, bipartisan legislation they say will “help a greater number of Americans successfully save for a secure retirement.”
The bill builds on the SECURE Act, versions of which stalled for years (and for much of last year after sailing through the House by a 417-3 vote in May 2019) until the Senate finally attached it to the year-end appropriations bill.
But the bipartisan appetite for moving forward on retirement reform could make the Securing a Strong Retirement Act of 2020, frequently referred to as “SECURE 2.0” or “Retirement 2.0,” travel a much shorter road to becoming law.
Here’s how the election results could influence that:
- If a “Blue Wave” develops and Democrats sweep the presidential election and manage to take control of the Senate while keeping the House, they may decide to wait until 2021 to take up significant retirement legislation, figuring they could tailor and pass a more “Democrat-friendly” bill.
- But if there is a split in the results—be it President Trump winning a second term but the Democrats take control of the Senate or Joe Biden being elected but Republicans holding on to the Senate, chances improve for SECURE 2.0 being passed during the lame-duck session. The same could hold true if Trump wins and the Republicans hold on to the Senate, owing to the bill’s bipartisan support and its following in the footsteps of last December’s SECURE Act.
- Or perhaps the most likely scenario is that the bill, which has not yet been “marked up,” would be reintroduced in the next Congress in 2021 where its bipartisan support (minus election pressures) should make the chances strong of it passing and being signed into law sometime next year. That would still be a relatively “fast-track” outcome given the delays most reforms included in the SECURE Act faced.
Lame-duck session could be busy
The end-of-year “lame-duck” session—so-called when Congress is in session after a November election with outgoing members still have voting powers to approve laws and before the beginning of a new Congress—could be plenty busy.
In addition to preventing a government shutdown, legislators will likely also be tasked with approving another coronavirus stimulus/relief package and Senate Majority Leader Mitch McConnell has said he vows to continue confirming both U.S. circuit and district court nominees right up to the end of the 116th Congress, which must adjourn Jan. 3.
A busy agenda could make it more difficult to consider SECURE 2.0. Or, given the bipartisan support and appetite for retirement reform, it could once again get tacked on to a bigger government spending bill.
Because the current federal government funding legislation runs only through Dec. 11, Congress has to either enact another short-term fix or a larger appropriations bill to fund the government for the remainder of fiscal year 2021 (which began Oct. 1).
Portman on board with new bill
Many of the provisions in the Neal-Brady bill are familiar, coming from previous bills Neal has introduced or supported in the House and the Retirement Security and Savings Act also known as the Portman-Cardin bill introduced by Sens. Rob Portman (R-OH) and Ben Cardin (D-MD).
A common denominator has been broad bipartisan support, and many of the initiatives have long been championed in Congress by Neal, Brady, Portman and Cardin.
Portman was quick to voice his support for the new Neal-Brady bill, acknowledging how it includes 20 different provisions from the Portman-Cardin bill.
“I applaud Chairman Neal and Ranking Member Brady for introducing this new legislation, which will build upon the successes of the SECURE Act to help ensure that all hard-working Americans have a chance to build a nest egg for their retirement,” Portman said in a statement the day the bill was introduced. “I’m particularly pleased that this legislation includes provisions I’ve championed with Senator Cardin to help Americans take the first step towards their retirement. I look forward to working with them to ensure we are able to make it easier for all Americans to save for retirement.”
Among the provisions Portman singled out are ones improving the tax credit so businesses have a larger incentive to create plans, allowing workers to save more for retirement, allowing workers to save longer for retirement, lowering the penalty on errors, and expanding product options so Americans can choose the right investment and annuity option for themselves.
SEE ALSO:
- SECURE Act 2.0 Legislation Introduced—And Wow!
- Massive New Retirement Bill Would Expand, Mandate Auto-Enrollment
- ‘Retirement 2.0’ Legislation: What’s Next
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
