Portman Applauds House Ways & Means Committee Approval of Key Retirement Legislation


Portman is Pushing for Senate Finance Committee Action on the Bipartisan Portman-Cardin Retirement Security Reforms


May 5, 2021 | Press Releases

WASHINGTON, DC – Today, U.S. Senator Rob Portman (R-OH) praised U.S. Representatives Richard Neal (D-MA) and Kevin Brady (R-TX), Chairman and Ranking Member of the House Ways and Means Committee, following a committee markup in which their bipartisan Securing a Strong Retirement Act of 2021 was unanimously approved.

Several components of Portman’s bipartisan Retirement Security & Savings Act, which he plans to introduce with Senator Ben Cardin (D-MD), are included in the Securing a Strong Retirement Act of 2021, including: improving the tax credit so businesses have a larger incentive to create plans, allowing workers to save more for retirement, allowing workers to save longer for retirement, lowering the penalty on errors, and expanding product options so Americans can choose the right investment and annuity option for themselves. Portman and Cardin’s bill, along with this bipartisan legislation in the House, seek to build on the SECURE Act, which became law in 2019.

“The action today by the Ways & Means Committee is a positive step this year in our efforts to enact bipartisan retirement security legislation, and I want to congratulate Chairman Neal and Ranking Member Brady on securing committee approval of this critical piece of legislation. The Securing a Strong Retirement Act will build upon the successes of the SECURE Act to help ensure that all hard-working Americans have a chance to build a nest egg for their retirement,” said Senator Portman. “I’m particularly pleased that this legislation includes provisions I’ve championed with Senator Cardin to help Americans take the first step towards their retirement. I look forward to working with Senate Finance Committee Chairman Wyden and Ranking Member Crapo on our legislation in the coming weeks to help make it easier for all Americans to save for retirement.”

NOTE: Several provisions from Portman’s Retirement Security & Savings Act (S. 1431) will be included in the Securing a Strong Retirement Act of 2021 bill, including provisions to:

  1. Increase the tax credit that encourages small companies to establish retirement plans;

  2. Allow 403(b) plans to invest in collective investment trusts;

  3. Increase to 75 the age for required minimum distributions;

  4. Index the IRA catch-up contribution limit;

  5. Create higher catch-up contribution for individuals who have attained age 60;

  6. Allow student loan repayments to qualify for an employer retirement match;

  7. Allow for small immediate financial incentives for contributing to plans;

  8. Require that companies include in their plans certain part time-workers who have achieved two years of service (rather than three);

  9. Remove required minimum distribution barriers for life annuities;

  10. Reform qualifying longevity annuity contract regulation;

  11. Require Treasury to update regulations so that exchange traded funds are more widely available to retirement investors;

  12. Reduce from 50% to 25% the excise tax on those who fail to take a minimum distribution;

  13. Reform the performance benchmarks for target date funds;

  14. Require the Treasury, DOL and PBGC to review current disclosure requirements and report to Congress on any improvements to these requirements;

  15. Remove unnecessary notices to employees not participating in employee retirement plans;

  16. Remove requirement that individuals take a minimum distribution if they have under $100,000 saved in retirement savings;

  17. Allow plans to correct inadvertent errors without a submission to the IRS if corrected in a reasonable time frame;

  18. Allow private sector firefighters to benefit from early distributions;

  19. Expand the ability to make charitable distributions;

  20. Reform the statute of limitations rules related to plans; and

  21. The legislation would allow retirement plans to not recoup overpayments that were mistakenly made to innocent retirees.  This is an important protection for participants who may have relied on these payments to pay for needed expenses and had no idea about the error.

 

A link to the bill text is here

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