Portman Priorities to Help Americans Save for Retirement Included in New Brady, Neal Bipartisan Legislation

October 27, 2020 | Press Releases

WASHINGTON, DC – Today, U.S. Senator Rob Portman (R-OH) praised Congressmen Richard Neal (D-MA) and Kevin Brady (R-TX), Chairman and Ranking Member of the Ways and Means Committee, on the introduction of their bipartisan Securing a Strong Retirement Act of 2020 to help more Americans achieve a secure retirement. Several components of Portman’s bipartisan Retirement Security & Savings Act, which he introduced with Senator Ben Cardin (D-MD), are included in this new, bipartisan House legislation, 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 new, bipartisan legislation in the House, seek to build on the SECURE Act, which became law in 2019 and included a set of reforms designed to help more Americans save for their retirement. Portman released the following statement:

“I applaud Chairman Neal and Ranking Member Brady for introducing this new legislation, which 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.  Many of the provisions in this legislation have been under consideration by the Senate for years, dating all the way back to the Senate Finance Committee markup in 2016. 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 them to ensure we are able to make it easier for all Americans to save for retirement.”

NOTE: Several provisions from Portman’s Retirement Security & Savings Act (S. 1431) are in the Securing a Strong Retirement Act of 2020 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 mandatory 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; and
  20. Reform the statute of limitations rules related to plans.

A link to the bill text is here