The retirement industry is increasing pressure on Congress to act on the SECURE 2.0 retirement reform legislative package now that the midterm elections are over and Congress is back in session.
Letters sent to Congressional leaders urging action during the lame-duck session that makes up the rest of 2022 include about 100 associations and businesses as signatories.
In the letter to Senate Majority Leader Chuck Schumer (D-NY), House Speaker Nancy Pelosi (D-CA), Senate Minority Leader Mitch McConnell (R-KY), and House Minority Leader Kevin McCarthy (R-CA), a group of 60 organizations and businesses, the majority of which are significant players in the retirement industry, urged the leaders to “take quick action and pass a compilation of retirement provisions known as SECURE 2.0.”
From the letter:
Americans live longer, and many worry that they will outlive their savings. But, more importantly, the pandemic’s effects on the economy, ongoing market fluctuations and volatility, historically considerable attention to neglected communities and vulnerable populations, and rising life expectancy show that Congress needs to consider access to retirement funds.
The bipartisan “Setting Every Community Up for Retirement Enhancement” (SECURE) Act, which put more Americans on a path to a secure and dignified retirement, was passed by Congress in 2019, marking a significant improvement in Americans’ retirement. Congress must pass the bipartisan SECURE 2.0 legislation if more Americans are to increase their retirement savings and improve their financial security.
Bipartisan, sensible solutions are included in SECURE 2.0 to address the concerns that employees and retirees have regarding their retirement security. The SECURE 2.0 components will make it easier and less expensive for small businesses to offer retirement plans, encourage more employers to give chances for employees to save for retirement at work, and help ensure retirement savings endure a lifetime. Additional measures will address issues that more vulnerable savers confront, such as working part-time, being military spouses, being low-income, or having student loan debt.
The American Retirement Association, the Insured Retirement Institute, the Investment Company Institute, the SPARK Institute, SIFMA, and numerous businesses, such as LPL Financial Holdings, Fidelity Investments, Empower, Franklin Templeton Investments, State Street, and others, are among the groups that have signed the letter.
The Bipartisan Policy Center emphasized the emergency savings elements of SECURE 2.0 in another letter it issued today to the four Congressional leaders. Aspen Institute, National Institute on Retirement Security, Vestwell, SecureSave, Consumer Federation of America, the U.S. Chamber of Commerce, and Commonwealth were among the 40 businesses and organizations that signed it.
Here is a rephrased portion of the letter:
As you consider your options, we implore you to add emergency savings clauses that allow workers to utilize resources that aid in developing short-term, liquid savings, like those found in the two Senate committee-approved legislation. Additionally, we urge you to consider options for workers who might not have access to a company retirement plan.
You are well aware of the pervasive financial insecurity that American households experience, with the absence of “emergency” funds for the near term being a particularly pressing problem. The situation has only worsened with the need for tools to help individuals save for emergencies increasing along with the cost of goods and services. For example, 40% of Americans said they would find it difficult to pay a $400 unforeseen emergency bill even before the COVID outbreak. One in four households now reports having no emergency funds, which is nearly twice as high for those earning less than $50,000 annually.
We are adamant that emergency savings policies support the objectives of the American retirement system and will increase household financial resilience. We stand by you as you work together to ensure a better, more secure economic future for the country and are prepared to support you in demonstrating your dedication to making sure that every worker has the skills and resources they require to weather the impending financial crisis, whether it be local or global in scope. Let’s act honorably toward all Americans as a group.
Busy lame-duck session
It is widely anticipated that the bipartisan-driven SECURE 2.0 bandwagon will make its way up Capitol Hill and land on President Joe Biden’s desk before the year is up.
SECURE 2.0 is anticipated to be included in one of the spending measures that must be approved because of its bipartisan support and relative lack of controversy.
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