On December 9th, the Social Security, Pensions and Family Policy subcommittee of the Senate Finance Committee, chaired by Senator Rob Portman (R-OH), held a hearing entitled “Investigating Challenges to American Retirement Security.”
Kevin Mayeux, CEO of National Association of Insurance and Financial Advisors (NAIFA) expressed his appreciation for the Senate Finance Committee’s subcommittee hearing on retirement savings, noting the broad bipartisan support for enhancements to the current private-sector retirement system, including extending the required minimum distribution (RMD) age to age 75 and the Catch-Up contribution limits for older workers, expanding the Saver’s Credit, and encouraging the use of “auto” features, such as auto-enrollment and auto-escalation of the default savings percentage.
Both the House and the Senate are working on legislation that would bring more financial security for American workers and their families as they identify and plan for their long-term financial goals. In the House, Ways & Means Committee Chairman Neal and Ranking Member Brady recently introduced the Securing a Strong Retirement Act of 2020, and in the Senate, Chairman Portman has been joined by his longtime “retirement partner," Senator Ben Cardin (D-MD) to introduce the Retirement Security and Savings Act.
The hearing highlighted the need for employers to adopt matching programs tied to student loan debt repayment, the need to fix the multiemployer pension plans that are at risk of becoming insolvent in the very near future, and the need to create public/private partnerships to expand education and awareness of the programs currently available.
NAIFA looks forward to working with the 117th Congress to accomplish enactment of meaningful retirement legislation so that America’s workers and retirees can live with dignity and purpose once they leave the workforce.