Congressmen Reintroduce House Bill to Stimulate Retirement Savings
A House Ways and Means Committee hearing yesterday — its first in the new Congress — saw the reintroduction of a bill aimed at improving Americans’ retirement preparedness by making it easier for employers to band together in workplace retirement savings plans, according to news reports.
Rep. Ron Kind, D-Wis., and Rep. Mike Kelly, R-Pa., reintroduced the Retirement Enhancement and Savings Act, which was first tabled during the last session, ThinkAdvisor writes.
RESA includes proposed federal tax changes aimed at encouraging retirement savings in employer-provided plans, to make it easier at the administrative level for companies to set up multiple employer plans, according to the publication. The bill, which also includes an education component, would also allow portability of lifetime income products and aims to preserve income guarantees attached to such products, ThinkAdvisor writes.
At the hearing, RESA obtained the support of MassMutual chairman and CEO Roger Crandall, according to the publication. Crandall said tax incentives in the proposed bill would offset the cost of setting up a workplace retirement plan, which he said is significant for small firms, ThinkAdvisor writes.
The CEO also said he supports the lifetime income solutions of the proposal, according to the publication. The bill also received the support of Insured Retirement Institute president and CEO Wayne Chopus, ThinkAdvisor writes.
“Americans today face many challenges in saving for retirement because they do not have the opportunities or access to do so through a private-sector workplace retirement plan,” he said at the hearing, according to the publication.