NAIFA is hopeful that the 117th Congress will reintroduce and enact the Securing a Strong Retirement Act of 2020 (SSRA), bipartisan legislation with many provisions to make it easier for employers to offer plans and to encourage higher participation rates by employees.
Many believe that Congress will first need to resolve the complex problems with current multi-employer (union) plans before turning their attention to the kinds of solutions found in the SSRA. On January 21, the House Ways and Means Committee introduced legislation to address the multi-employer pension crisis, the Emergency Pension Plan Relief Act of 2021, setting up opportunities to follow with a reintroduction of SSRA. With the both the House and the Senate closely divided by party affiliation, Congress will likely focus on bipartisan legislation such as SSRA.
Increasing the RMD age from age 72 to age 75 is a provision in SSRA that is especially timely. The COVID-19 pandemic has had negative consequences for retirement savings account balances. Some participants have had to stop making contributions, take emergency withdrawals, or cope with fluctuations in investment markets.
Increasing the required minimum distribution (RMD) age will give retirement savers more time to to make up shortfalls and meet their retirement objectives. Since the time that the RMD age was originally set at age 70, people are living longer and working longer. Also, many Americans find themselves behind on their retirement savings.
NAIFA is a longtime proponent of improving and expanding the private-sector retirement savings efforts of employers and individuals, helping families save adequately, and ensuring access to lifetime income products - such as annuities - that can guarantee a stream of income for life.