Democratic lawmakers have reintroduced a bill aimed at addressing the retirement gap and bolstering women's financial security.
Rep. Lauren Underwood, D-Ill., and Sen. Tammy Baldwin, D-Wisc., on Tuesday reintroduced the Women's Retirement Protection Act of 2023 in the House and Senate. The bill, versions of which were previously introduced in 2019 and 2021 during prior congressional sessions and didn't move, includes a set of provisions that target some of the challenges that disproportionately affect women as they plan for their financial futures, according to a news release.
Of note, the 2021 bill included a provision to allow part-time workers to participate in an employer's retirement plan after two years instead of three. That provision was included in SECURE 2.0, a comprehensive retirement security package Congress passed in December.
The latest version would expand existing spousal protections for 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.
The bill would also provide grants for community-based organizations to help provide information and financial tools to women who are of working or retirement age. Lastly, the bill would look to support women with low incomes and survivors of domestic abuse seeking retirement benefits by providing grants to assist these women to obtain qualified domestic relations orders, the legal instruments that allow for the division of retirement benefits.
"As women strive for economic equality in this country, we need to make sure they can retire with dignity," Ms. Underwood said in a news release. "That includes ensuring that a woman's spouse cannot empty their shared retirement savings without her consent. Senator Baldwin and I introduced the Women's Retirement Protection Act to address economic inequalities and help women achieve financial security and independence."
The bill is endorsed by the National Women's Law Center, Pension Rights Center, AARP, and the National Committee to Preserve Social Security & Medicare, according to the news release.
