Pass it now, Mitch.
A number of senators are getting antsy about the fate of the SECURE Act, bipartisan legislation that passed in House in May by a vote of 417-3, but nonetheless has been on hold since then.
Senator Tim Scott, R-South Carolina, among others, sent a letter to Majority Leader Mitch McConnell, R-Kentucky, urging immediate Senate consideration of the bipartisan Setting Every Community Up for Retirement Enhancement, or SECURE, Act.
Scott was joined by Rob Portman, R-Ohio, who had previously advocated for moving the bill forward, as well as Susan Collins, R-Maine, Joni Ernst, R-Iowa, Cory Gardner, R-Colorado, Martha McSally, R-Arizona, and Thom Tillis, R-North Carolina.
The bill, which would repeal the maximum age for traditional IRA contributions, simplify safe harbor rules and increase automatic enrollment is generally seen as encouraging more coverage for workers nationwide.
The letter
“This bipartisan legislation would expand access to retirement plans for millions of Americans, allow older workers and retirees to contribute more to their retirement accounts, increase 401k coverage to part-time employees, prevent as many as 4 million people in private-sector pension plans from losing future benefits, protect 1,400 religiously affiliated organizations whose access to their defined contribution retirement plans is in jeopardy, and do the right thing for Gold Star families,” the letter read.
“We encourage the Senate to take action on the SECURE Act as soon as possible. Doing so demonstrates to our constituents that the Senate can lead in a bipartisan way for workers saving for retirement, tax fairness, and family financial security.”
Cruz objections
Republican Senator Ted Cruz from Texas is the most high-profile politician known to be blocking the SECURE Act from being passed.
Cruz’s objection stems from the 11th-hour removal of the bill’s 529 plan provisions by House Speaker Nancy Pelosi, reportedly due to pressure from teachers’ unions who objected to the provision allowing money saved in 529 accounts to be used for home education, apprenticeships, student loan expenses and education support for students with disabilities.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
