Retirement groups urge Congress to pass SECURE 2.0

A group of more than 60 retirement-focused organizations and companies sent a letter to congressional leaders Thursday urging passage of a bipartisan retirement security package known as SECURE 2.0 before a new Congress starts next year.

"The economic impact of the pandemic, continuing market fluctuations and volatility, a historically significant focus on underserved communities and vulnerable populations, and increasing longevity demonstrate the need for Congress to consider policies to expand access to retirement savings," the groups said in the letter.

"Congress must now act to pass the bipartisan SECURE 2.0 legislation and help more Americans build retirement savings and strengthen their financial security," they added.

There are three bipartisan bills that House and Senate members are discussing behind the scenes, attempting to reconcile any differences between the bills and put forth a package aimed at bolstering Americans' retirement security.

The House in March overwhelmingly passed the bipartisan Securing a Strong Retirement Act of 2022 on a 414-5 vote and both the Senate Health, Education, Labor and Pensions Committee and Senate Finance Committee have advanced similar bills since then.

The three bills include similar provisions to permit an employer to make matching contributions to a 401(k) plan, 403(b) plan or SIMPLE IRA based on qualified student loan payments; reduce the service requirement for part-time workers to participate in an employer's retirement plan to two years from three; and enhance the startup tax credit for small businesses launching a retirement plan, among others, and will form the basis of a SECURE 2.0 package.

"The components of SECURE 2.0 will encourage more employers to offer opportunities to save for retirement at work, make it easier and less costly for small businesses to offer retirement plans, and help ensure retirement savings last a lifetime," the group said in the letter.

Once a final SECURE 2.0 package is finished, industry sources expect lawmakers to attach it to a piece of must-pass legislation, such as a spending bill.

However, while SECURE 2.0 has broad, bipartisan support, there aren't many legislative days left in the congressional session and plenty of items on the agenda for the lame-duck period — the time frame after the November elections through the end of the year — including passing a spending bill to keep the government open, a national defense spending bill, additional aid to Ukraine and money for combating COVID-19, among other items.

"We respectfully ask that you take quick action and make this proposal a top priority during the upcoming lame-duck session," the groups said.

Separately, more than 40 businesses and organizations on Thursday sent a similar letter to congressional leaders also urging lawmakers to pass SECURE 2.0 during the lame-duck session.

If SECURE 2.0 isn't passed this year, its legislative process will have to start anew when the next congressional session begins in January.