With Congress consumed by finding a way to keep the
government open for business, and the session coming near the end, the
financial services industry is conceding defeat on passing a retirement
security package in 2018.
Industry executives hoped to see something passed from
these proposals: the Retirement Enhancement and Savings Act; the Family Savings
Act, and the Retirement, Savings, and Other Tax Relief Act of 2018. All are
largely bipartisan efforts to make it easier for Americans to save for
retirement.
Alas, it was not to be.
“We are very disappointed that Congress did not adopt
comprehensive retirement security legislation despite the strong showing of
bipartisan support for it in the House and Senate,” said Cathy Weatherford,
Insured Retirement Institute president and CEO. “We’ve missed an opportunity to
help millions of American workers prepare for a secure retirement with improved
access to income that cannot be outlived during their retirement years.”
However, a new session will begin in two weeks. Already,
Sens. Ben Cardin, D-Md., and Rob Portman, R-Ohio, have introduced the Retirement
Security & Savings Act, a broad set of reforms designed to help Americans
save more for retirement and increase access to 401(k)s and other retirement
plans.
The measure includes "more than 50 provisions to
increase savings in 401(k)s and IRAs, help improve coverage in the
small-employer market and among part-time workers, reduce barriers to lifetime
income retirement options, and allow employees to keep retirement savings in an
IRA or qualified plan until they need them for retirement expenses instead of
being forced to deplete their savings after age 70 and a half."
Cardin and Portman have a long history of working together
on retirement issues while serving in the House together. Of note, the
2001 Portman-Cardin measure more than doubled contribution limits to IRAs,
allowed portability between different types of qualified retirement plans, and
created the ability for older workers to make catch-up contributions to 401(k)s
and IRAs.
Since it became law, 401(k) and other defined contribution
plan assets increased by 179 percent and savings in IRAs, including rollovers
from retirement plans, more than tripled. Overall, U.S. retirement savings have
increased from $11.3 trillion in 2001 to $28.3 trillion today.
The American Council of Life Insurers is hopeful something
gets done early in the new year.
"Enhancing the retirement system would help millions
of Americans save for retirement and ensure their savings will last a
lifetime," said Alane Dent, senior vice president, federal relations
at ACLI.
InsuranceNewsNet Senior Editor John Hilton has covered business
and other beats in more than 20 years of daily journalism. John may be reached
at john.hilton@innfeedback.com. Follow
him on Twitter @INNJohnH.
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