Senators Introduce Retirement Bill Similar to House SECURE Act

The SECURE Act is scheduled for a vote by the House Ways & Means Committee on Tuesday.

"Without a doubt, passing a strong, comprehensive retirement security measure this year is now well within reach," said Paul Richman, IRI Chief Government and Political Affairs Officer, in a statement on Monday.

As introduced by Grassley and Wyden, RESA makes further technical modifications, the most significant of which are updating the effective dates and modifying the exception to the required minimum distribution rules, according to the senators. Plus, it provides for an acceleration of Pension Benefits Guaranty Corporation (PBGC) premiums.

Susan Neely, president and CEO of the American Council of Life Insurers, said in a statement Monday that RESA "is important public policy that will help more Americans achieve retirement security for themselves and their families."

She added: "It's important and appropriate that this effort is bipartisan as well. There's tremendous need to do everything possible to address the retirement savings gap."

Neely pointed to a recent report by the Employee Benefit Research Institute that found only 17% of workers are very confident in their ability to live comfortably in retirement.

RESA's provisions will make it easier for employers, especially small businesses, to provide workplace retirement savings plans and to offer annuities that guarantee an income for life, according to Neely.

"The workplace has proven to be an effective place to start the retirement savings habit and build retirement security for many households," she explained. "This bill makes practical, smart changes to expand those opportunities."

— Check out Sweeping Retirement Bill, Raising RMD Age, Unveiled by House Panel on ThinkAdvisor.