The Senate Finance Committee on Wednesday unanimously approved a series of proposals that make it more likely that Congress will fully adopt a pension improvement package this year.
Called the American Retirement Improvement Act Now (EARN), the measure contains some provisions that are the same or similar to those proposed in the House of Representatives, which passed the Strong Retirement Act (HR 2954) in late March in a bipartisan 414 -5 vote.
Known as Secure 2.0, the bill aims to build on the original 2019 Security Act, which introduced changes aimed at increasing retirement security by increasing access to work-saving plans, among other efforts. .
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The Profits Act “includes more than 70 proposals aimed at helping more Americans save – the culmination of months of cooperation between nearly every committee member, Democrat and Republican,” said Finance Committee Chairman Ron Widen, D-Ore. remarks at Wednesday’s meeting.
The approval of the EARN Act by the committee comes about a week after the Senate Health, Education, Labor and Pensions Committee proposed another retirement measure called the Rise and Shine Act (p. 4353). Together, the bills are the Senate version of Secure 2.0.
Many Senate regulations are the same as those cleared by the House, including one to make it easier for employers to contribute to plans 401 (k) (and similar workplace plans) on behalf of employees who pay student loans instead of contributing for their retirement plan.
Other similarities between the two chambers’ proposals include allowing older workers to save more through so-called catch-up contributions to their 401 (k) and raising the age at which savers have to start taking the required minimum distributions from their pension accounts.
However, the differences between the proposals of the two chambers will have to be worked out before full approval can be obtained from Congress. Senate lawmakers said during a committee hearing Wednesday that they were in talks with their colleagues in the House to reach an agreement on the final version.
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