401k watchers are keeping a close eye on Congress in 2019, and so are retirement industry lobbyists.
Now that there seems to be some momentum and real bipartisan support for a pair of federal retirement savings bills making the rounds in Congress, insurance and retirement industry advocacy groups are planning to put the full-court press on lawmakers in the coming months to help push some meaningful legislation toward President Trump’s desk.
In early April, the House Ways and Means Committee unanimously passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, acting on the same day the Senate reintroduced its latest version of the Retirement Enhancement Savings Act (RESA).
The bills would provide U.S. workers with expanded opportunities to participate in employer-provided retirement plans while providing some administrative relief to employers and incentivizing them to offer more savings plan opportunities.
Together, the SECURE Act and RESA are the most sweeping retirement legislation since the Pension Protection Act in 2006. A reconciled version of the two bills is expected to become law—and the powerful insurance industry and financial services industry lobby is going to do everything they can to make sure Congress doesn’t drop the ball before becoming fixated on the runup to the 2020 Presidential election.
After passing through committee April 2, the SECURE Act is awaiting a trip to the House floor for a vote by the full chamber, which is something the lobbying groups are intent on making sure happens sooner rather than later. That may well be the case thanks to Congress singling it out for special expedited “fast-track” consideration that promotes timely floor action.
Once passed on the House floor it will be sent to the Senate, where advocates hope it can be quickly reconciled with RESA before being sent to President Trump to be signed into law.
American Council of Life Insurers president and CEO Susan Neely has said getting RESA over the finish line is ACLI’s No. 1 priority, and the goal is to get the SECURE Act through the House in May and a reconciled SECURE Act/RESA bill through the Senate by August.
Groups headed for Capitol Hill
One of the insurance industry’s biggest lobbying arms convenes for its annual meeting in Washington, D.C. this weekend, with AALU’s Transform 2019 starting Sunday and running through Tuesday, April 30.
On Tuesday afternoon, House Ways and Means Committee Chairman Richard Neal (D-MA), one of the chief backers of the SECURE Act, will address AALU meeting attendees during a “Town Hall” session providing an outlook for the 116thCongress that will no doubt touch on the status of the bills.
RESA backer Senator Chuck Grassley, Chairman of the Senate Finance Committee, is scheduled to brief attendees of the NAIFA Congressional Conference May 14-15 in Washington.
The National Association of Insurance and Financial Advisors is another strong advocate for passage of the retirement bills, and its event will bring financial professionals from all 50 states together for an advocacy briefing and Day-on-the-Hill meetings with federal lawmakers.
“NAIFA has advocated for years in favor of retirement legislation with many of the provisions included in the SECURE Act,” said NAIFA CEO Kevin Mayeux. “Private-sector retirement plans are the best option for workers getting ready to meet their financial needs during retirement, and NAIFA applauds the efforts of Congress to promote plan participation and improve retirement preparedness.”
The National Journal’s research arm, surveying more than 15,000 Capitol Hill players and others, concluded that NAIFA is viewed by policymakers as the most credible, valued and respected voice in the insurance industry.
NAIFA’s government relations team will offer policy updates on issues important to advisors and their clients—such as the retirement bills—and provide tips and advice for meeting with elected officials. That happens the following day, May 15, when more than 500 attendees will go to Capitol Hill for meetings with their senators and representatives.
NAIFA, NAILBA partner to boost clout
NAIFA also this month announced a strategic alliance with the National Association of Independent Life Brokerage Agencies (NAILBA) that will support political advocacy and engagement efforts on Capitol Hill and in state legislatures across the U.S.
“This partnership reflects commitments from both organizations to create opportunities to leverage our organizational strengths while ensuring our members have the knowledge to serve their clients and to speak in a unified voice,” Mayeux said.
“Americans’ ability to save and plan for their futures is at an all-time low. Consumers need access to advisors and agents who can help them address the financial realities of retirement,” NAILBA CEO Dan LaBert said. “This collaboration demonstrates leadership and forward-thinking strategies to advance industry-wide efforts to bring value to millions of American households and businesses that need our products and services to plan for secure futures.”
As part of the agreement, NAILBA members are invited to participate in NAIFA’s Congressional Conference.
More plans to visit Capitol Hill
The Financial Planning Association (FPA) will hold its FPA Advocacy Day 2019 June 5-6 in Washington, providing an opportunity for FPA members and leaders to gather on The Hill to continue the dialogue with federal policymakers and advocate for issues on behalf of CERTIFIED FINANCIAL PLANNER (CFP) professionals.
The National Association of Plan Advisors (NAPA) will hold its NAPA D.C. Fly-In Forum July 23-24 in Washington to advocate for legislative and regulatory policy that affects the employer-sponsored retirement plan industry.
NAPA members who manage at least $100M in plan assets; provide service to at least 10 retirement plans, representing a total of at least 2,000 participants; and have at least 5 years of experience in the employer-sponsored retirement plan industry are encouraged to attend.
Delegates to this year’s NAPA DC Fly-In Forum will have a unique opportunity to interact with, hear from, and potentially influence leading voices in the debate about retirement plans and retirement policy.