Legislative Highlights - Improving Access to Retirement Savings Act
Senators Chuck Grassley (R-Iowa), Maggie Hassan (D-New Hampshire), and James Lankford (R-Oklahoma) introduced a bill named the Improving Access to Retirement Savings Act. This proposed bill will extend retirement plan choices to nonprofit groups and provide incentives to encourage small businesses to offer their employees a viable plan. Recently, there has been a big push for legislation that provides a call to action when it comes to retirement savings.
This proposed legislation would provide the following enhancements to workplace-based retirement plans:
- Extend retirement benefits to employees of nonprofit organizations by providing them the same access to pooled employer plans (PEPs).
- Small businesses who join a multiple employer plan (MEP) can take the small employer pension start-up credit for their first three years in a MEP.
- Offer a grace period to correct reasonable errors administering automatic enrollment and automatic escalation features when enrolling into a MEP. Errors will need to be corrected within nine and a half months of the end of the year in which the mistakes were made.
This proposed bill will help both employers and employees when it comes to retirement benefits. Employers can offer and facilitate a cost-effective retirement plan. Employees can participate in a retirement savings program that will give them the tools to successfully prepare for retirement.
Senator Grassley stated,
“Government should be doing everything it can to help Americans save more of their own hard-earned money so they can retire with peace of mind and independence.”
As of this writing, the bill was introduced in the Senate on May 19, 2021, but you can monitor Congress’ latest actions on the bill, here.
For questions, reach out to your local ABG Southwest representative or Contact Us.