Statements from the retirement industry came pouring in late Monday after it was announced that the Setting Every Community Up for Retirement Enhancement (SECURE) Act made the cut to be included in the 1,773-page, $1.4 trillion 2020 spending bill that Congress must pass by Dec. 20 to avoid another shutdown.
The spending bill is scheduled to be voted on in the House Tuesday and the Senate on Wednesday. It is expected to pass both chambers and could be signed by President Trump by the end of this week.
Backers who have been pushing for the Senate to pass the SECURE Act for months were quick to celebrate and thank lawmakers for getting it included in the spending bill, which amounted to the last chance for the SECURE Act to pass in 2019.
Here’s a sampling of the comments:
- American Retirement Association CEO Brian Graff:
“We can confirm that the SECURE Act has been added to the year-end funding bill, which should reach the President’s desk for signature by the end of the week. All provisions are included and they included (at our request) a remedial amendment period provision (amendments required no earlier than the 2022 plan year).
“However, they did not change or extend effective dates as we thought might happen due to revenue scoring time constraints. So many of the provisions are effective for plan years beginning January 1, 2020, other than MEPs/PEPs and the eligibility of long-term, part-time workers which are effective for plan years beginning January 1, 2021. Find more analysis [today] on NAPA Net (napa-net.org).”
- Empower Retirement President & CEO Edmund F. Murphy III:
“Congress can do a great service to American retirement savers by voting for the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019. Empower Retirement applauds lawmakers for considering these big ideas and big changes to retirement.
“This bill has the potential to make it easier for small businesses to set up retirement plans—something they’ve told us they favor. We believe these changes will encourage retirement savings and help provide American workers with a more secure retirement.
“The passage of SECURE not only provides long delayed pension reform, but also clears the path for new efforts, including proposals from Senators Rob Portman (R-OH) and Ben Cardin (D-MD).
“We believe that SECURE will pass Congress as early as this week and that President Trump will sign the bill into law. This is a significant holiday gift to American retirement savers and one that should inspire greater retirement preparedness across the nation.”
- Principal Financial Group CEO and 2019 ACLI Chairman Dan Houston:
“We applaud the inclusion of the SECURE Act in the appropriations bill being considered this week by Congress. This is a major step forward in helping Americans achieve financial security in retirement.
“Once approved, this legislation will help more small and medium-sized business owners to cover their employees with retirement savings plans. It also opens up additional pathways to retirement savings by allowing the incorporation of guaranteed income solutions within an employer’s 401k plan.
“As Americans continue to live longer, they may spend as many years in retirement as they did in the workforce. It is critical we emphasize and support lifetime income solutions that help people to protect and live off their retirement savings responsibly.
“We look forward to the SECURE Act’s passage by both houses of Congress and signature by the President.”
- Blackrock Vice Chairman Barbara Novick:
“We applaud the bipartisan support for the SECURE Act. Retirement security is a defining issue for Americans and we support initiatives that expand access to retirement plans, increase participation in those plans and help individuals achieve better retirement outcomes. The SECURE Act is our greatest opportunity in over a decade to improve retirement security for millions of Americans.”
- AALU President and CEO Marc Cadin:
“The SECURE Act will help millions of Americans with their retirement. Time is the one critical element to effective savings that we never get back, and this bill will give people the ability to save more money, more efficiently. Thank you to the SECURE Act’s steadfast champions in Congress and to the negotiators for prioritizing the financial security of the American people. AALU urges all Members of Congress to vote yes on H.R. 1865 this week.”
- MetLife EVP and Head of Retirement & Income Solutions Group Graham Cox:
“We commend Congress on the inclusion of the Setting Every Community Up for Retirement Enhancement (SECURE) Act’s provisions in its appropriations package. This legislation removes the long-standing regulatory barriers that prevent companies from including lifetime-income options in their employees’ retirement plans.
“MetLife is a strong supporter of these provisions and committed to ensuring that employees enjoy a secure retirement by having access to guaranteed income for life. Through the requirement that lifetime income estimates be included on annual defined contribution (DC) plan benefit statements, employees will gain a better understanding of how their savings translate into retirement income. The safe harbor provision, provided under the SECURE Act, increases workers’ access to solutions that will protect against the risk of outliving their savings. Both of these provisions provide valuable tools that will strengthen retirement security for millions of Americans.”
- American Benefits Council President James A. Klein:
“The bipartisan deal struck by congressional leaders is a victory for millions of Americans who receive health and financial security through employer-sponsored benefit plans.
“Repeal of the 40% ‘Cadillac Tax’ finally removes an onerous burden from health plans that 178 million Americans reply upon.
“Enactment of the Setting Every Community Up for Retirement Enhancement (SECURE) Act opens the door to greater retirement income security.
“We applaud congressional leaders—Senators McConnell and Schumer and Speaker Pelosi and Leader McCarthy for these two extraordinary accomplishments.”
- American Benefits Council Senior Vice President, Global Retirement and Compensation Policy Lynn Dudley:
“Among the many valuable elements of the SECURE Act is a measure that would address a glitch in the nondiscrimination rules affecting participants in frozen pension plans. The Council has determined that hundreds of thousands of participants could lose future pension benefits as of January 1, 2020, without a legislative fix. We applaud the leaders of the committees of jurisdiction for their support and, in particular, Senators Rob Portman and Ben Cardin, for their bipartisan commitment to employer-sponsored retirement plans.”
- American Council of Life Insurers (ACLI) President and CEO Susan Neely:
“The SECURE Act is the most sweeping retirement security legislation to move through Congress in more than a decade. It would mark a significant step toward modernizing America’s retirement system for workers.
“Each day, 10,000 Americans turn age 65 and many can expect to live 20 years or longer in retirement. Yet, research shows that one-third of Americans approaching retirement have between nothing and $25,000 in savings to supplement Social Security income.
“The SECURE Act makes important changes that will go a long way toward addressing the nation’s looming retirement crisis. One provision alone will get more than 700,000 small business employees nationwide to start saving for retirement. Another will make it easier for employers to offer retirement plans with lifetime income options through annuities.
“We applaud House and Senate leadership for their determination to pass this important legislation. By doing so, members of Congress can demonstrate bipartisan leadership in addressing critical needs of everyday Americans.”
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.
