SENATE RETIREMENT LEGISLATION INTRODUCED

Posted on May 19, 2021

Bipartisan Measure Expands Plan Choices for Non-Profit Groups, Clarifies Incentive to Encourage Small Business Plans

WASHINGON, D.C. – Congress continues to signal strong, bipartisan interest in improving retirement savings opportunities and lifetime income choices for workers and retirees, according to the Insured Retirement Institute (IRI).

The group issued a letter supporting the Improving Access to Retirement Savings Act, introduced this week by Senator Charles Grassley (R-Iowa), Senator Maggie Hassan (D-N.H.), and Senator James Lankford (R-Okla.).

“The bill provides common-sense, bipartisan solutions that will help address the challenges and obstacles that continue to inhibit savings and producing income during retirement,” wrote Paul Richman, IRI Chief Government and Political Affairs Officer.

IRI cited two key provisions of the bill in its letter. First, the bill would encourage non-profit organizations to offer employee retirement benefits by providing those groups with the same access to pooled employer plans (PEPs) that the Setting Every Community Up for Retirement Enhancement (SECURE) Act offered to small businesses.

The measure also clarifies when a tax credit can be used by small businesses to help facilitate offering retirement plans to their employees if they join a multiple employer plan (MEP) or PEP. This clarification will encourage more small businesses to offer a retirement plan and facilitate greater use of MEPs or PEPs as the means to provide that plan.

Richman wrote that the Improving Access to Retirement Savings Act complements the Securing a Stronger Retirement Act (HR 2954), which recently passed unanimously in the House Ways and Means Committee.

“With the Senate and the House introducing comprehensive retirement security legislation, IRI urges both chambers of Congress to work together and quickly act to bolster retirement security,” Richman said.

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