Buchanan Retirement Security Measure Passes House
WASHINGTON – The U.S. House today passed a sweeping retirement bill that includes Congressman Vern Buchanan’s bipartisan legislation to make it easier for businesses to offer retirement plans for workers.
“Today’s House passage brings us one step closer to helping millions of hardworking Americans who enter retirement without adequate savings,” Buchanan said. “I’m optimistic the Senate will take up this important bill in the near future to help folks prepare for retirement and invest in their future.”
Previously introduced by Buchanan in the 114th and 115th Congresses, Buchanan’s Retirement Security for American Workers Act (H.R. 1907) allows businesses to join together in “multiple employer plans” (MEPs) to share the administrative burden and costs of offering a retirement plan. Buchanan’s bill was included in the SECURE Act, which passed the Ways and Means Committee in April with bipartisan support.
“Hopefully my bill goes to the President’s desk this year,” Buchanan said moments after the full bill was approved by the House. “Congress needs to help Americans save for retirement.”
AARP endorsed Buchanan’s legislation, noting it would, “Make it easier for small businesses to offer employees an automatic savings option.”
The American Retirement Association also backed Buchanan’s bill, stating, “We hereby express our strong support for the Setting Every Community up for Retirement Enhancement (SECURE) Act of 2019 and the inclusion of the Retirement Security for American Workers Act in the SECURE Act … Pooling unrelated employers together into one plan creates an economy of scale that lowers both employer and plan participant cost.”
The Insured Retirement Institute also supports the bill, stating, “Enactment of the Retirement Security for American Workers Act will be a critical step towards creating financial security during retirement. Revamping the rules and regulations to allow for MEPs to meet the needs and concerns of small employers will help to close the retirement coverage gap and improve the retirement outlook for millions of working Americans by expanding workers’ access to retirement plans.”
According to USA Today, the average American has less than $4,000 in savings while nearly 60 percent of adults have less than $1,000 to their names.
Incredibly, up to 35 percent of private-sector workers over the age of 22 work for a company that doesn’t offer a retirement plan, while over 40 percent of millennials didn't have access to an employer-sponsored retirement plan, according to the Pew Charitable Trusts.
Millions of American employees stand to benefit from expanding the availability of workplace retirement plans. In fact, the AARP has found that workers are 15 times more likely to save when they have access to a retirement plan.
Buchanan represents over 220,000 Social Security recipients in the nation’s eighth-oldest congressional district.