From his perch on the U.S. House Ways & Means Committee, U.S. Rep. Vern Buchanan, R-Fla., was able to get his proposal to offer employees of small businesses better retirement benefits through the committee.
Buchanan introduced his “Retirement Security for American Workers Act” back in February 2017. When he talked about the proposal at the end of 2016, he said his legislation “makes it less costly for small businesses to offer retirement benefits, and could help the more than 76 million Americans who work for companies that do not offer the opportunity to save for a secure retirement.”
Buchanan’s bill allows small businesses to work together in “multiple employer plans” (MEPs) which he insists will lower costs and make more businesses offer retirement benefits. The Florida Republican cited figures from the Pew Charitable Trusts which shows more than a third--35 percent--of workers in the private sector over the age of 22 work for employers that do not offer retirement benefits.
Buchanan had some momentum with his bill at the end of last year, getting it through the House as part of U.S. Rep. Mike Kelly’s, R-Penn., “Family Savings Act” in October but the bill did not clear the U.S Senate.
Last week, Buchanan brought the bill back and he was able to roll it into the “Setting Every Community up for Retirement Enhancement (SECURE) Act” which makes it easier to offer annuities in 401(k)s and 403(b)s and raises the age for taking required minimum distributions (RMDs) from 70.5 to 72. The bill was introduced by U.S. Rep. Richard Neal, D-Mass., the chairman of the House Ways & Means Committee and has the support of U.S. Rep. Kevin Brady, R-Texas, the top Republican on the committee.
Buchanan weighed in on getting his proposal through the committee on Wednesday.
“Today’s committee passage brings us one step closer to helping millions of hardworking Americans who enter retirement without adequate savings,” Buchanan said. “I’m optimistic the full House will take up this important bill in the near future to help folks prepare for their golden years and invest in their future.
“Hopefully this will be the year my legislation goes to the president’s desk,” Buchanan added. “Congress needs to help Americans save for retirement.”
Paul Richman, the chief government and political affairs officer at the Insured Retirement Institute, praised Buchanan‘s proposal.
“Enactment of the Retirement Security for American Workers Act will be a critical step towards creating financial security during retirement. Revamping the rules and regulations to allow for MEPs to meet the needs and concerns of small employers will help to close the retirement coverage gap and improve the retirement outlook for millions of working Americans by expanding workers’ access to retirement plans,” said Richman.
Brady tipped his cap to “Representative Vern Buchanan…for [his] work on this important bill.”
U.S. Rep. Ron Kind, D-Wisc., is back as the main cosponsor of Buchanan’s bill and he is also behind Neal’s proposal.
There is a similar bill to the SECURE Act over in the U.S. Senate which U.S. Sen. Chuck Grassley, R-Iowa, the chairman of the U.S. Senate Finance Committee, brought out on Monday. U.S. Sen. Ron Wyden, D-Oreg., the top Democrat on the Senate Finance Committee, is backing Grassley’s proposal.
First elected to Congress in 2006, Buchanan represents parts of Southwestern Florida in Congress. Buchanan currently is one of the co-chairs of the Florida delegation and he leads Republicans the U.S. House Trade Subcommittee.
