The House overwhelmingly passed legislation Tuesday night to bolster retirement savings opportunities for workers, sending the bill on to the Senate.
The legislation (H.R. 2954), called the “Securing a Strong Retirement Act of 2022” or “SECURE Act 2.0,” builds on the 2019 SECURE Act by further incentivizing Americans to save for their retirements. SECURE 2.0, which passed the House on a 414-5 vote, raises the age when Americans must start taking money out of their retirement accounts from 72 to 75, and requires employers that establish new retirement plans to automatically enroll newly hired employees at a pre-tax contribution level of 3 percent of the employee’s salary.
The bill also increases “catch-up” contribution limits for employees as they near retirement and allows nonprofit organizations to join together to offer multi-employer retirement plans to their employees, which the original SECURE Act did for for-profit companies.
“After a lifetime of hard work, no American should face financial uncertainty in their old age,” said House Ways and Means Committee Chair Richard Neal (D-MA). “This bipartisan legislation will make it easier for workers to save and plan for their futures. In advancing this measure, we build on the positive impact of the SECURE Act and continue expanding opportunities for Americans to plan for their golden years. I hope the Senate follows our lead and swiftly sends this widely supported measure to President Biden’s desk.”
Timeline for action in the Senate is unclear. Although there is bipartisan support for many of the provisions in the House bill, the Senate wants to use a retirement bill sponsored by Sens. Ben Cardin (D-MD) and Rob Portman (R-OH) as a foundation for its version.
“We’re talking amongst ourselves,” said Sen. Ron Wyden (D-OR), chair of the Senate Finance Committee, to Bloomberg BNA. “We’ve a lot on our plate.”