Momentum on Capitol Hill continues to build for addressing significant retirement reform legislation in 2021.
Last week, H.R. 2954, the “Securing a Strong Retirement Act of 2021” (also known as SECURE 2.0) unanimously cleared the House Ways and Means Committee, on its way to the House floor for consideration, where it looks like it may enjoy the same kind of overwhelming bipartisan support that led the original SECURE Act to pass the House by a 417-3 vote.
Retirement reform is also on the radar in the Senate, where on Thursday, the Senate Health, Education, Labor, and Pensions (HELP) Committee will hold its first hearing dedicated exclusively to retirement issues since 2013.
Senator Patty Murray (D-WA), Chair of the HELP Committee, will conduct the hearing, titled, “Retirement Security: Building a Better Future,” at 10 a.m. EDT on Thursday, May 13.
The hearing will include testimony from experts in employee benefits, personal finance, and retirement policy.
Scheduled to appear and testify during the hearing are:
- Lori Lucas, President and CEO, Employee Benefit Research Institute, Washington, D.C.
- Shai Akabas, Director of Economic Policy, Bipartisan Policy Center, Washington, D.C.
- Deva Kyle, Counsel, Bredhoff & Kaiser, Washington, D.C.
- Dave Gray, Head of Workplace Retirement Products, Fidelity Investments, Boston
Paul Richman, IRI chief government and political affairs officer at the Insured Retirement Institute (IRI), said the organization welcomes the Senate HELP Committee’s hearing to explore ways to address the anxiety many workers, retirees, and their families are experiencing about their future financial security during their retirement years.
“The burden of accumulating savings for one’s retirement has been put squarely on the shoulders of America’s workers and retirees. We are looking forward to hearing from the committee about measures which can be put in place to help America’s workers, retirees, and their families build economic equity, strengthen their financial security, and protect their income in a way that can sustain them throughout their retirement years,” Richman told 401k Specialist.
Back in March, IRI released its 2021 Federal Retirement Security Blueprint, created to advance policies addressing the challenges and obstacles faced by America’s workers and retirees.
Although no official agenda for Thursday’s HELP Committee hearing has been released, many elements of SECURE 2.0 figure to be discussed. While the hearing will not be open to the public for in-person attendance, the hearing is expected to be livestreamed at this link.
SECURE 2.0 on Senate Finance Committee radar
SECURE 2.0 could also be on the Senate Finance Committee’s agenda after the annual August recess, a committee aide told Bloomberg Law Monday.
“We’re very hopeful at the Finance Committee that we can put together another package” similar to legislation (H.R. 2954) recently approved by the House Ways and Means Committee, said Drew Crouch, senior tax and ERISA counsel for Senate Finance.
As currently written, among many other provisions, SECURE 2.0 would automatically enroll new employees into workplace 401k plans, increase the required minimum distribution (RMD) age from 72 to 75, and allow individuals to pay down a student loan instead of contributing to a 401k plan and still receive an employer matching contribution.
Many of the bill’s provisions enjoy strong support from financial professionals, according to a recent survey from Nationwide Retirement Institute which found that 93% agree the legislation would make it easier for their clients to save for retirement.
Specifically, 93% support the bill’s student loan provision and 79% support raising the RMD age to 75—which the original SECURE Act boosted to 72 from 70.5.
This overwhelming support suggests the proposed legislation would be well-timed, with 77% of financial professionals agreeing that COVID-19 has led their clients to slow or stop contributions toward their retirement savings, and another 50% reporting that their clients’ financial security has been negatively impacted by COVID-19.
SEE ALSO:
- 401k-Friendly ‘SECURE 2.0’ Bill Advances in House
- As SECURE 2.0 Heads to Markup, Advisors Indicate Strong Support
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.
