116th Congress, 1st Session

Hearings

Legislative Proposals

National Savings Proposals

Other Reform Proposals

Hearings

Keeping Our Promise to America’s Seniors: Retirement Security in the 21st Century

On May 15, 2019, the House Committee on the Budget held a hearing on issues related to retirement security and approaches to close the retirement gap. A replay of the hearing and a list of witness testimony is available here.

Challenges in the Retirement System

On May 14, 2019 at 10:15 a.m., the Senate Committee on Finance held a hearing on the topic of challenges in the retirement system and discussed various approaches of reform. A replay of the hearing, a list of witnesses and witness testimony is available here.

Unlocking Small Business Retirement Security

On March 27, 2019, the House Committee on Small Business held a meeting to examine the retirement saving options for small employers, the benefits and barriers they face in offering plans, and options for expanding coverage. A list of witnesses and witness testimony are available here. Watch the hearing here.

Improving Retirement Security For America’s Workers

On February 6, 2019, the House Committee on Ways & Means heard testimony regarding improvement to retirement security for American workers. The hearing covered topics on the nation’s private retirement savings system, including increasing opportunities for employees to save through a plan at work. During the hearing Representative Ron Kind introduced H.R. 1007, the Retirement Enhancement and Savings Act (See ‘Legislative Proposals’ section below for a bill summary). The Committee also discussed implementing Social Security reforms and expressed support for the H.R. 860, the Social Security 2100 Act. The Committee released background data relating to income sources for retirees, estimates of access, take-up, and participation rates of American workers in qualified plans, and data on Social Security benefits as a source of retirement income. (Watch the hearing). Witnesses (written testimonies are available here):

Financial Security in Retirement:
Innovations and Best Practices to Promote Savings

On February 6, 2019, the Senate Special Committee on Aging heard testimony on increasing retirement savings and enhance Americans’ financial readiness to retire. The Committee heard different recommendations to reform the retirement system, including utilizing features such as auto-enrollment, offering tax credits to cover the costs of starting a retirement plan, using multiple employer plans (MEPs), and increasing financial literacy. Chairman Collins introduced two bills – S.321, the Retirement Security Act of 2019 and S.322, the SIMPLE Plan Modernization Act – in the days leading up to the hearing (See ‘Legislative Proposals’ section below for bill summaries). The U.S. Government Accountability Office (GAO) released a report, ‘A Comprehensive Re-evaluation Needed to Better Promote Future Retirement Security’ as part of the GAO Comptroller General’s testimony (Watch the hearing). Witnesses (written testimonies are available here):

Legislative Proposals

National Savings Proposals

Auto-IRA Act

Introduced as S. 2370 by Senator Sheldon Whitehouse (D-RI) on July 31, 2019.

This bill amends the Internal Revenue Code to (1) require certain employers who do not maintain qualifying retirement plans or arrangements to make available to their eligible employees a payroll deposit individual retirement account (IRA) arrangement (automatic IRA arrangement) which grants such employees the right to opt-out of participation, (2) require the Department of the Treasury to provide employers with a model notice for notifying employees of their opportunity to participate in an automatic IRA arrangement and for providing details regarding the election period, (3) impose a penalty on employers who fail to provide eligible employees access to an automatic IRA arrangement, (4) allow employers who do not have more than 100 employees a tax credit for costs associated with establishing an automatic IRA arrangement, and (5) increase the dollar limitation on the tax credit for small employer pension plan startup costs.

This bill has been read twice and referred to the Senate Committee on Finance.

Source: Congress.gov; Senator Whitehouse’s press release.

Saving for the Future Act

SENATE BILL

Introduced as S. 1053 by Senator Christopher A. Coons (D-DE) and Senator Amy Klobuchar (D-MN) on April 4, 2019.

This bill establishes a minimum employer contribution to a savings plan of 50 cents per hour worked for employees who work at a company with ten or more employees. The contributions would go into a savings plan, which could include existing plans, such as a 401(k). Employees at smaller companies would be able to save through federally provided “UP Accounts,” modeled after the Thrift Savings Plan for federal workers. UP Accounts would have low fees, could easily be transferred from job to job, and would be tailored to the employee’s age and savings needs. The first $2,500 in savings would be directed to a worker’s UP-Savings account, an accessible account for non-routine expenses. Additional contributions then go to a worker’s UP-Retirement account. Workers would be automatically enrolled to contribute 4% of their own earnings, but may opt out or select a different contribution level. Worker contributions would automatically rise to as high as 10%. Employers would receive a tax credit worth 50% of their minimum contributions to their first 15 workers, and 25% of their minimum contributions to their next 15 workers. The smallest employers (10 or fewer workers) may opt out of employer contributions; if they do, workers get UP Account access and a direct, individual credit for their savings.

This bill has been read twice and referred to the Senate Committee on Finance.

Source: Congress.gov; Senator Coons’ press release and bill summary.

HOUSE BILL

Introduced as H.R. 2120 by Representative Scott H. Peters (D-CA), Representative Lucy McBath (D-GA), and Representative Lisa Blunt Rochester (D-DE) on April 8, 2019.

The bill has been introduced and referred to the House Committee on Ways and Means and the House Committee on Education and Labor

Source: Congress.gov; Representative Peters’ press release and bill summary.

Other Reform Proposals

Resolution to Support the Goals and Ideals of
National Retirement Security Week

S.Res. 380 was introduced on October 24, 2019 and passed the Senate by voice vote.

Introduced as S.Res.339 by Senator Michael B. Enzi (R-WY) et al. on September 25, 2019.

This resolution calls for the Senate to:

(1) Support the goals and ideals of National Retirement Security Week, including raising public awareness of the importance of saving adequately for retirement;

(2) Acknowledge the need to raise public awareness of a variety of tax-preferred retirement vehicles that are used by many people in the United States but could be used by more; and

(3) Call on States, localities, schools, universities, nonprofit organizations, businesses, other entities, and the people of the United States to observe National Retirement Security Week with appropriate programs and activities, with the goal of increasing the retirement savings and personal financial literacy of all people in the United States, thereby enhancing the retirement security of the people of the United States.

This bill was referred to the Senate Committee on Health, Education, Labor, and Pensions. This resolution was previously introduced in the first and second sessions of the 115th Congress.

Source: Congress.gov

Expanding Access to Retirement Act of 2019

Introduced as S. 1927 by Senator John Kennedy (R-LA) on June 20, 2019.

This bill would make it easier and less expensive for small businesses to offer retirement plans, like 401(k)s, by encouraging small businesses to band together through organized business associations, like chambers of commerce, that can sponsor affordable retirement plans for all the associations’ members.

This bill has been read twice and referred to the Senate Committee on Health, Education, Labor, and Pensions.

Source: Congress.gov; Senator Kennedy’s press release.

Expanding Access to Retirement Savings for Caregivers Act

Introduced as H.R. 3078 by Representative Harley Rouda (D-CA) et al. on June 4, 2019.

This bill would allow individuals that took at least one year out of the workforce, without receiving an earned income for the purposes of caring for a family member, to make catch-up contributions in years prior to age 50 to their 401(k) plans, individual retirement accounts (IRAs), and other eligible retirement accounts. Under current law, only employees aged 50 and older are eligible to utilize catch-up contributions to make additional deposits to their 401(k) plans, individual retirement accounts (IRAs), and other eligible retirement accounts.

This bill has been introduced and referred to the House Committee on Ways and Means.

Source: Congress.gov; Representative Rouda’s press release.

Promoting Opportunity for Women Entering Retirement (POWER) Act

Introduced as S. 1672 by Senator Doug Jones (D-AL) and Senator Martha McSally (R-AZ) on May 23, 2019.

This bill would improve older women’s economic security by codifying the National Resource Center on Women and Retirement Planning, which provides retirement planning tools and financial education to women who are most at-risk for poverty in older age. In addition to helping women plan for their future financial, health care, and caregiving needs, the Center educates seniors about scams and predatory practices, which disproportionately affect older women and cost Americans billions of dollars each year.

This bill has been read twice and referred to the Senate Committee on Health, Education, Labor, and Pensions.

Source: Congress.gov; Senator Jones’ press release.

Retirement Parity for Student Loans Act

Introduced as S. 1428 by Senator Ron Wyden (D-OR) et al. on May 13, 2019.

This bill would allow employers to make matching contributions to a retirement plan while their employees make student loan repayments, allowing recent graduates who cannot afford to save money for retirement above their student loan repayments would no longer have to forego the employer match.

This bill has been read twice and referred to the Committee on Finance.

Source: Congress.gov; Senator Wyden’s press release.

Federal Retirement Commission Act

Introduced as S. 1435 by Senator Todd Young (R-IN) and Senator Cory A. Booker (D-NJ) on May 13, 2019.

This bill would create of a commission formed with the Secretary of Treasury, Labor, Commerce, two presidential appointees, six U.S. Senate appointees, and six U.S. House of Representatives appointees. The commission would be tasked with providing a comprehensive review of: private benefit programs, focusing on moving from defined benefit to defined contribution models; current private retirement coverage; trends in labor, economic, and demographic changes; and other countries’ retirement programs.

This bill has been read twice and referred to the Senate Committee on Health, Education, Labor, and Pensions.

Source: Congress.gov; Senator Young’s press release.

Retirement Security and Savings Act

Introduced as S. 1431 by Senator Rob Portman (R-OH) and Senator Benjamin L. Cardin (D-MD) on May 13, 2019.

This bill includes over 50 provisions to address four broad areas: (1) allowing people who have saved too little to set more aside for their retirement; (2) helping small businesses offer 401(k)s and other retirement plans; (3) expanding access to retirement savings plans for low-income Americans without coverage; and (4) providing more certainty and flexibility during Americans’ retirement years.

This bill has been read twice and referred to the Senate Committee on Finance.

Source: Congress.gov; Senator Portman’s press release.

Lifetime Income Disclosure Act

SENATE BILL

Introduced as S. 1574 by Senator Johnny Isakson (R-GA) and Senator Christopher Murphy (D-CT) on May 21, 2019.

This bill would require 401(k) plan sponsors to inform participating workers of the projected monthly income they could expect at retirement based on their current account balance. It is patterned on the Social Security Administration’s annual statements, which are mailed each year to working Americans to inform them of their estimated monthly benefits based on their current earnings. Under this act, defined contribution plans subject to Employee Retirement Income Security Act of 1974 would be required annually to inform participants of how their account balance would translate into a monthly income stream based on age at retirement and other factors. This bill was previously introduced as  S.868 in the 115th Congress, 1st Session. 

This bill has been read twice and referred to the Senate Committee on Health, Education, Labor, and Pensions.

Source: Congress.gov; Senator Isakson’s press release.

HOUSE BILL

Introduced as H.R. 2367 by Representative Mark Pocan (D-WI) et al. on April 25, 2019.

This bill amends the Employee Retirement Income Security Act of 1974 (ERISA) to require pension benefit statements to include a lifetime income disclosure at least once during any 12-month period.

The disclosure must set forth the lifetime income stream equivalent of the total benefits accrued with respect to the participant or beneficiary. The “lifetime income stream equivalent of the total benefits accrued” is the amount of monthly payments the participant or beneficiary would receive if the total accrued benefits were used to provide lifetime income streams based on certain assumptions, including that the participant or beneficiary has a spouse of equal age and a single life annuity.

The Department of Labor must issue a model lifetime income disclosure, assumptions that plan administrators may use in converting total accrued benefits into lifetime income stream equivalents, and related rules. No plan fiduciary, sponsor, or other person may be liable under ERISA solely due to the provision of lifetime income stream equivalents derived in accordance with the assumptions and related rules issued by Labor, including explanations contained in the model lifetime income disclosure.

This bill has been referred to the House Committee on Education and Labor. This bill was previously introduced as H.R. 2055 and as S.868 in the 115th Congress, 1st Session.

Source: Congress.gov; Bill summary authored by the Congressional Research Service.

Small Business Employees Retirement Enhancement Act of 2019

Introduced as S.1011 by Senator Tom Cotton (R-AR) on April 3, 2019.

This bill would increase access to workplace retirement plans by making it easier for small business owners to offer plans and modify requirements for multiple employer plans. It would eliminate the regulatory barriers that prevent small business owners from joining professionally managed pooled employer plans, thereby lowering the administrative cost of offering a plan. It would also transfer some of the fiduciary responsibility from the employer to the pooled plan provider, lessening the legal risk to small businesses – in turn, incentivizing more of them to get off the sidelines – and placing the responsibility and accountability for important plan decisions with those who have the expertise to make them. This bill was introduced during the 115th Congress, 2nd session as S. 3219.

This bill has been read twice and referred to the Senate Committee on Finance.

Source: Congress.gov

Refund to Rainy Day Savings Act

S. 1018 was introduced by Senator Cory Booker (D-NJ) et al. on April 3, 2019.

This bill would enable individuals to build emergency savings during tax time by allowing filers to save a portion of their tax refund for “rainy day” or long-term savings. A previous version of this bill was introduced as S. 3220 in the 115th Congress, 2nd Session.

This bill has been read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Source: Congress.gov; Senator Cotton’s press release. 

Strengthening Financial Security Through
Short-Term Savings Accounts Act of 2019

S. 1019 was introduced by Senator Doug Jones (D-AL) on April 3, 2019.

This bill would reduce early withdrawals (“leakage”) from retirement accounts and facilitate short-term savings by allowing employers to automatically enroll their workers in emergency savings accounts in addition to retirement accounts. A previous version of this bill was introduced as S. 3218 in the 115th Congress, 2nd Session.

Source: Congress.gov; Senator Cotton’s press release. 

Retirement Security Flexibility Act of 2019

S. 1020 was introduced by Senator Todd Young (R-IN) on April 3, 2019.

This bill would expand access to workplace retirement plans by giving small employers more flexibility when setting up 401Ks for their employees. The bill would also make it easier for savers to auto enroll into long-term savings plans and more quickly escalate their savings. A previous version of this bill was introduced as S. 3221 in the 115th Congress, 2nd Session.

Source: Congress.gov; Senator Cotton’s press release. 

Women’s Retirement Protection Act of 2019

HOUSE BILL

Introduced as H.R. 2005 by Representative Lauren Underwood (D-IL) et al. on April 1, 2019.

This bill would expand the existing spousal protections for defined benefit plans to defined contributions plans to prevent one spouse from making decisions that might undermine a couple’s retirement resources without the other’s knowledge and consent; change the minimum participation standards for long-term, part-time workers; provide grants for community-based organizations to help provide information about financial tools to women who are of working or retirement age; and provide grants for community-based organizations that assist survivors of domestic abuse in obtaining qualified domestic relations orders, the legal instruments that allow for the division of retirement benefits.  A previous version of this bill was introduced as H.R. 7026 in the 115th Congress, 2nd session.

This bill has been referred to the House Committee on Education and Labor, and in addition to the Committee on Financial Services.

Source: Congress.gov; Representative Underwood’s press release.

SENATE BILL

Introduced as S. 975 by Senator Patty Murray (D-WA) on April 1, 2019.

A previous version of this bill was introduced as S. 3436 in the 115th Congress, 2nd session.

Source: Congress.gov; bill summary.

Setting Every Community up for Retirement Enhancement (“SECURE”) Act of 2019

Provisions of this act were incorporated into H.R. 1865, which makes appropriations for fiscal year 2020. H.R. 1865 passed the House by 297-120 on December 17, 2019 and passed the Senate by 71-23 on December 19, 2019.

On December 20, 2019, H.R. 1865 was signed by the President and become Public Law No: 116-94. 

Introduced as H.R. 1994 by Representative Richard E. Neal (D-MA) et al. on March 29, 2019.

This bill expands opportunities for Americans to increase their retirement savings and improves the portability of lifetime income options from one plan to another. Changes proposed in this bill include: repealing the prohibition on contributions to a traditional IRA by individuals of age 70½ and over; increasing the auto enrollment safe harbor cap from 10 to 15 percent of employee pay; simplification of safe harbor 401(k) rules; and creating a new tax credit of up to to employers to defray startup costs for new section 401(k) plans and SIMPLE IRA plans that include automatic enrollment. Other changes include treating certain taxable non-tuition fellowship and stipend payments as compensation for IRA purposes; permitting qualified defined contribution plans to make a direct trustee-to-trustee transfer to another employer-sponsored retirement plan or distributions of a lifetime income investment; and increasing the required minimum distribution age from 70½ to 72.

On March 29, 2019, this bill was referred to the House Committee on Ways and Means and the House Committee on Education and Labor.

On April 2, 2019 this bill passed out of the House Committee on Ways and Means. Read the press release here. On May 16, 2019 this bill was reported amended by the House Committee on Ways and Means and discharged from the House Committee on Education and Labor. This bill was placed on the Union Calendar. 

On May 21, 2019, H. Res. 389, which provides for, among others, for consideration of H.R. 1994, passed the House of Representatives.

On May 23, 2019, this bill passed the House of Representatives by 417-3. This bill was received in the Senate on June 3, 2019.

Source: Congress.gov (Summary for H.R. 1994 and Summary for H.R. 1865); See House Ways and Means press release and a section by section summary of H.R. 1994.

Providing Retirement Security to Workers in Small Businesses, Cooperatives, and Service Organizations Act of 2019

Introduced as H.R. 1993 by Representative Ron Kind (D-WI) and Representative Mike Kelly (R-PA) on March 29, 2019.

This bill would increase access for workers in small companies by modifying requirements for multiple employer plans multiple employer plans and would provide premium relief for rural co-ops and charities.

This bill has been referred to the House Committee on Ways and Means and the House Committee on Education and Labor.

Source: Congress.gov; Representative Kelly’s press release.

Retirement Security for American Workers Act

Introduced as H.R. 1907 by Representative Vern Buchanan (R-FL) on March 27, 2019.

This bill would amend the Internal Revenue Code of 1986 to modify the qualification requirements with respect to certain multiple employer plans with pooled plan providers to make it less costly for small businesses to set up retirement plans. It would allow businesses to join together in multiple employer plans (MEPs) to share the administrative burden and costs of offering a retirement plan. A version of this bill was previous introduced in February 2017.

This bill has been referred to the House Committee on Education and Labor and Committee on Ways and Means.

Source: Congress.gov; Representative Buchanan’s press release.

Increasing Access to a Secure Retirement Act

Introduced as H.R. 1439 by Representative Tim Walberg (R-MI) and Representative Lisa Blunt Rochester (D-DE) on February 28, 2019.

The bill would clarify the rules surrounding guaranteed lifetime income products by establishing specific guidelines for employers who want to include annuities on their retirement plan menus. 

This bill has been introduced and referred to the House Committee on Education and Labor.

Source: Congress.gov; Representative Walberg’s press release.

Portable Benefits for Independent Workers Pilot Program Act

Introduced as S. 541 by Senator Mark R. Warner (D-VA) on February 25, 2019.

This bill would support innovation and experimentation with portable benefits models that would allow workers to carry these benefits such as such as paid leave, workers’ compensation, skills training, unemployment insurance, tax withholding and tax-advantaged retirement savings with them from job to job across a lifetime in the workforce. This bill establishes a $20 million grant fund for states, localities and nonprofit organizations to experiment with portable benefits models for the growing independent workforce.

This bill has been read twice and referred to the Senate Committee on Health, Education, Labor, and Pensions.

Source: Congress.gov; Senator Warner’s press release.

Graduate Student Savings Act of 2019

SENATE BILL

Introduced as S. 448 by Senator Elizabeth Warren (D-MA) et al. on February 12, 2019.

This bill would allow funds from a graduate student’s stipend or fellowship to be deposited into an Individual Retirement Account (IRA). While federal and state governments generally tax fellowship or stipend funding as income, these sources of funding do not qualify as “compensation” and therefore cannot be saved in an IRA. This bill was introduced during the 115th Congress, 1st session as H. 3136 and S.1379 and during the 114th Congress, 2nd Session as H.R. 6470 and S. 3025.

This bill has been read twice and referred to the Senate Committee on Finance.

Source: Congress.gov; Senator Warren’s press release. 

HOUSE BILL

H.R. 1194 was introduced by Representative Joseph P. Kennedy, III (D-MA) et al. on February 13, 2019.

This bill has been referred to the House Committee on Ways and Means.

Source: Congress.gov. 

Family Savings Act of 2019

This bill was introduced as H.R. 1084 by Representative Mike Kelly (R-PA) on February 7, 2019.

This bill seeks to allow small businesses to join to create a 401(k) plan in an affordable manner, give employers more time to put new retirement plans in place, and simplify the rules for participation in employer plans. This bill also aims to help workers participate in retirement plans and calls for exempting small retirement accounts from mandatory payouts, eliminating the age limit on IRA contributions, and allowing military reservists to maximize their retirement contributions. The bill would create universal savings accounts. Individuals would be able to contribute up to$2,500 into the accounts on an annual basis, with any withdrawals being tax free. This bill was introduced in the 115th Congress, 2nd session as H.R. 6757.

This bill has been referred to the Committee on Ways and Means, in addition to the Committees on Education and Labor, and the Budget.

Source: Congress.gov

Retirement Enhancement and Savings Act of 2019

SENATE BILL

Introduced as S. 972 by Senator Chuck Grassley (R-IA) on April 1, 2019.

This bill would encourage employers to adopt new retirement plans and reduce the cost of operating retirement plans for their employees. The bill also includes new provisions to encourage workers to plan and save for retirement. Reforms in this legislation include: expanding multiple employer plans to make it easier for small employers to join together to sponsor a single retirement plan for their workers; creating a new fiduciary “safe harbor” for employers that offer as part of a defined contribution plan an option for employees to invest in lifetime-income arrangements, such as annuities; and enhancing the ability of employees to transfer their retirement plan assets to a new retirement plan when they change jobs.

This bill has been read twice and referred to the Committee on Finance.

Source: Congress.gov; Senator Grassley’s press release and section-by-section summary of the legislation.

HOUSE BILL

Introduced as H.R. 1007 by Representative Ron Kind (D-WI) and Representative Michael Kelly (R-PA) on February 6, 2019.

The bill would ease federal tax barriers to employer-provided retirement plans by making it administratively easier and less financially onerous for employers to create multiple employer plans, or MEPs. This legislation would also permit the portability of lifetime income products and preserve the income guarantees associated with those investments. This bill was introduced as H.R. 5282 during the 115th Congress, 2nd session and S. 3471 during the 114th Congress, 2nd session.

This bill has been introduced and referred to the House Committee on Ways and Means, in addition to the House Committee on Education and Labor.

Source: Congress.gov; Representative Kind’s press release.

Retirement Security Act of 2019

Introduced as S.321 by Senator Susan Collins (R-ME) and Senator Margaret Wood Hassan (D-NH) on February 4, 2019.

The bill would allow more businesses to join multiple employer plans (MEPs) to offer retirement programs to their employees and allow businesses to share administrative burdens of a retirement plan. Members of a MEP would also be protected from losing their tax benefits if one employer in a MEP fails to meet the minimum criteria necessary for retirement plans to obtain tax benefits. The Treasury would be required to simplify, clarify, and consolidate required notices to lessen costs. Finally, the bill would simplify compliance for small businesses that choose to provide employees with employer matches on contributions up to 10 percent of pay.

This bill has been read twice and referred to the Senate Committee on Finance.

Source: Congress.gov; Senator Collins’ press release.

SIMPLE Plan Modernization Act

Introduced as S.322 by Senator Susan Collins (R-ME) and Senator Mark Warner (D-VA) on February 4, 2019.

The bill would raise the contribution limit for SIMPLE plans from $12,500 to $16,000 (halfway between current SIMPLE plans and traditional 401(k)’s) for the smallest businesses (1 to 25 employees), with a corresponding increase in the catch-up limit from $3,000 to $4,500. Additionally, businesses with 26 to 100 employees would have the option of the higher contribution limits, and, in order to continue to encourage them to transition to 401(k)’s when they can do so, increase their SIMPLE plan mandatory employer contribution requirements by one percentage point if they elect the higher limits. Employers that grow beyond 25 employees would have a reasonable transition period to conform to new rules. The limit increases would be unavailable if the employer has had another defined contribution plan within the past three years. Treasury would also be required to study the use of SIMPLE plans and report to Congress on such use, along with any recommendations.

This bill has been read twice and referred to the Senate Committee on Finance.

Source: Congress.gov; Senator Collins’ press release.