NEC Supports the “Securing a Strong Retirement Act of 2021”
Building on a long history of support for federal policies that promote retirement security, The New England Council has endorsed the bipartisan Securing a Strong Retirement Act of 2021 (H.R. 2954). In a letter sent to each member of the New England house delegation on May 19, 2021, the Council outlined the benefits of the proposal and encouraged members of Congress to support the legislation.
The securing a strong retirement act of 2021 was introduced on May 3, 2021, by House Ways & Means Chairman Richard Neal (D-MA) — the dean of the New England delegation — and Ranking Member Kevin Brady (R-TX). The legislation includes a number of provisions aimed at helping Americans prepare for a secure retirement, regardless of where they are in the retirement savings process. Among other measures, the bill would:
- Create a new financial incentive for small businesses to offer retirement plans;
- Direct the Internal Revenue Service to promote the Saver’s Credit to increase utilization;
- Allow individuals to save for retirement longer by increasing the required minimum distribution age to 75;
- Offer individuals ages 62, 63 and 64 more flexibility to set aside savings as they approach retirement;
- Allow individuals to pay down a student loan instead of contributing to a 401(k) plan and still receive an employer match in their retirement plan;
- Make it easier for employees to find lost retirement accounts by creating a national, online, database of lost accounts.
This legislation builds upon the Setting Every Community Up or Retirement Enhancement (SECURE) Act of 2019, which the Council also supported. The bill was approved by unanimous vote during a House Ways & Means Committee markup on May 5, and now awaits action on the House floor.
For more information on this issue or the NEC Financial Services Committee, please contact Griffin Doherty.