When the 118th Congress is sworn in on January 3, its members will have a different agenda with multiple priorities. Only time will tell if retirement is one of them.
A recent Willis Towers Watson webinar forecasted upcoming changes and concerns from the new Congress, and how these priorities will affect 2023 and 2024. Anne Marie Breheny, senior legislative and regulatory advisor at Willis Towers Watson, predicted that retirement policy may be stagnant for the next two years, considering the different committees and reorganization of key members in the House of Representatives and Senate.
“There will be new folks in the key chairmanships, the new committees, and a lot of shuffling around throughout different aspects of Congress that will affect the retirement agenda,” she said during the webinar. “I think we’re going to have a very different set of focus on retirement next year.”
The split of Congress, with Republicans taking the U.S. House of Representatives and Democrats keeping control of the Senate, is another hurdle that likely lessens the chance of new retirement legislation in 2023. Legislators have used the budget reconciliation process previously to pass bills with just 50 votes, but the new divide may prove tougher to advance proposals.
Another central instance is the current Senate jurisdiction over ERISA. When the new Congress sets in at the beginning of 2023, Senator Bernie Sanders, I-Vermont, is expected to take over as chair of the Senate Committee on Health, Education, Labor and Pensions (HELP), while Senator Bill Cassidy, R-Louisiana, has already stated his intention on becoming the next ranking member of the committee.
Additionally, Senator Rob Portman’s, R-Ohio, decision to retire at the end of the year leaves little support in Congress for new retirement legislation. Portman has been known for his bipartisan legislation on retirement-related issues and was a sponsor of the SECURE Act.
Instead, Breheny anticipates the change to redirect focus on healthcare instead of retirement. In Senator Sander’s letter announcing his intention to chair the HELP committee, Mike Casca, a spokesperson for Sanders, emphasized his focus on universal healthcare and prescription drug affordability. “As chairman of the committee, [Sanders] will focus on universal health care, lowering the cost of prescription drugs, increasing access to higher education, and protecting workers’ rights on the job,” Casca said in a statement.
While this may drive some attention away from retirement, Brehemy was optimistic on what the devotion to healthcare will mean for retiree health. “There will be less time devoted to retirement in Congress, but some of it can drive a focus to retiree health, and the length that health might have to retirement.”
SEE ALSO:
- Retirement Plan Advocate Senator Rob Portman to Retire
- Senate Introduces SECURE 2.0-Like Retirement Bill
- Reconciling SECURE 2.0: Similarities and Differences Between House and Senate Bills
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.