Neal Introduces Two Bills to Increase Americans’ Retirement Security
WASHINGTON, DC – Ways and Means Committee Ranking Member Richard Neal (D-MA) today introduced two pieces of legislation, the Automatic Retirement Plan Act of 2017 and the Retirement Plan Simplification and Enhancement Act of 2017, that will make it easier for Americans to save for a financially secure retirement.
“Too many workers in this nation reach retirement age without the savings they need to live a healthy, secure retirement,” said Rep. Neal. “The retirement crisis in America is real and will only worsen unless we make saving easier and do more to encourage workers to begin saving for retirement earlier. These bills simplify our retirement system and create more opportunities for people to save. After lifetimes of hard, honorable work, Americans should be able to retire with dignity and financial security.”
One reason Americans reach retirement age with such little savings is that too few workers are offered an opportunity to save for retirement through their employers. According to AARP, workers are 20 times more likely to save if they have access to use automatic payroll deduction plans, yet 55 million Americans aren’t able to save for retirement out of their paychecks. The Automatic Retirement Plan Act of 2017 generally would require all but the smallest employers to maintain a 401(k) plan for their employees.
While the United States’ current retirement system has effectively helped many Americans financially prepare for old age, simpler policies would do an even better job of helping men and women save wisely and preserve their income in retirement. The Retirement Plan Simplification and Enhancement Act of 2017 includes several provisions to simplify the retirement rules. For example, the bill would exempt retirement savings under $250,000 from the complicated required minimum distribution rules. The bill also encourages workers to save by making it easier for middle-class Americans to take advantage of the Saver’s Credit.
“We should remove barriers to retirement saving and encourage Americans of all ages to plan for their futures,” added Rep. Neal. “Doing so improves the long-term financial security of today’s workers, and of generations to come.”