A week after the House overwhelmingly passed a bipartisan retirement security package, the House Education and Labor Committee approved a narrower retirement bill along party lines.
The committee, in a 29-21 vote with all Republicans present in opposition, advanced the Protecting America's Retirement Security Act of 2022 on Tuesday.
The bill, introduced March 31 by Rep. Lucy McBath, D-Ga., is a combination of several other bills introduced earlier in the congressional session. Notably, the bill would require the Department of Labor to examine fee disclosure regulations for defined contribution plans and explore ways to enhance participants' understanding of fees; expand existing spousal protections for defined benefit and defined contributions plans to prevent one spouse from making decisions that might undermine a couple's retirement resources without the other's knowledge and consent; and modify safe harbors in the Employee Retirement Income Security Act and the Internal Revenue Code to urge plan sponsors to re-enroll non-participants at least once every three years, unless the individual affirmatively opts out each time.
Moreover, the bill would aim to boost financial literacy by requiring the secretary of education to create a financial resources portal on a centralized department website; allow tax filers receiving a refund via direct deposit to defer up to 20% of their refund to a Treasury-held account to accumulate interest as a way to boost emergency savings; and create an employee ownership and participation initiative within the Labor Department that would be authorized to award grants for employee ownership programs nationwide.
Committee Republicans, including ranking member Virginia Foxx of North Carolina, said during Tuesday's markup that the bill would expand the federal government's role in retirement planning and harm workers, retirees and employers.
On March 29, the House in a 414-5 vote passed the Securing a Strong Retirement Act of 2022, or SECURE 2.0, a wide-ranging package that would require 401(k) and 403(b) plans to automatically enroll participants upon becoming eligible and allow 403(b) plans to participate in multiple employer plans, among other provisions.
"Just last week, the House overwhelmingly passed legislation that would make key improvements to our retirement system," said Chairman Robert C. "Bobby" Scott, D-Va. "Now, Rep. McBath's bill provides us an opportunity to build on that progress and continue to help workers, families and employers."
Rick W. Allen, R-Ga., disagreed at the markup Tuesday. "It is unfortunate the majority is choosing to go it alone with this bill today when retirement policy has long been an area of bipartisan cooperation," Mr. Allen said.
