Congress passed a landmark retirement security package in December, known as SECURE 2.0, which will drastically impact the future of the retirement landscape through more than 90 provisions.
Among a host of provisions, SECURE 2.0 expands automatic enrollment in 401(k) and 403(b) plans, raises the required minimum distribution age and allows employers to make matching contributions to retirement plans based on qualified student loan payments.
"From a legislative point of view, I think right now, a lot of the action will move to the regulatory agencies for implementation of SECURE 2.0," said Melissa Kahn, Washington-based managing director of retirement policy for State Street Global Advisors' defined contribution team.
SECURE 2.0 passed as part of a $1.7 trillion omnibus spending bill on Dec. 23, after lawmakers' last-minute negotiations narrowly avoided a government shutdown. The package combines three bipartisan bills from the House and Senate and builds off of the SECURE Act, which Congress passed in late 2019.
In March, House lawmakers overwhelmingly passed the Securing a Strong Retirement Act of 2022, introduced by last Congress' Ways and Means Committee Chairman Richard Neal, D-Mass., and now retired ranking member Kevin Brady, R-Texas.
In a press call on Dec. 21, Mr. Neal said SECURE 2.0 is "a historic advance on what we were able to do just a few years ago."
Other bills that formed the basis of SECURE 2.0 include the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg Act, or RISE & SHINE Act, and the Enhancing American Retirement Now Act, or EARN Act. The RISE & SHINE Act advanced out of the Senate Health, Education, Labor and Pensions Committee in June, and the EARN Act advanced out of the Senate Finance Committee in June.
"I've heard from so many people who had to raid savings meant for the future, not to mention countless others who have never had access to an employer-sponsored retirement plan," said Sen. Patty Murray, D-Wash., chairwoman of the HELP Committee last Congress, in a statement after SECURE 2.0 passed. "That's why these reforms are so important."