Washington, D.C.– The following is a statement from BPC director of economic policy Shai Akabas on the passage of the bipartisan Setting Every Community up for Retirement Enhancement (SECURE) Act of 2019 in the House of Representatives:
“Much-needed improvements to the U.S. retirement system moved one step closer to becoming law today. The SECURE Act contains numerous bipartisan, consensus reforms that are long past due, including provisions based on recommendations produced by BPC’s Commission on Retirement Security and Personal Savings.
“Several of these policies would increase access to workplace retirement savings plans, especially among many employees of small businesses and those who work on a long-term, part-time basis. This would mean millions more hard-working Americans—particularly those with moderate incomes—would have a brighter and more secure future through the option to automatically put money aside for retirement.
“The SECURE Act also contains sensible provisions to incentivize plan sponsors to adopt automatic enrollment, to make it easier for lifetime income options to be incorporated into retirement plans, and to close a loophole in the tax code for those inheriting retirement accounts.
“As the bill moves to the Senate, it’s worth noting that most of the provisions overlap with the long-debated Retirement Enhancement and Savings Act, which has already been reintroduced in the Senate on a bipartisan basis.
“These reforms represent a good first step towards improving the shortcomings of the U.S. retirement system, but much work will remain, including the need to address Social Security’s waning financial health and to rectify the deteriorating condition of many other pensions plans before it’s too late.”
Shai Akabas is available for comment.