House Passes Kelly Legislation to Increase Retirement Savings for Americans
Year-end tax relief package includes text of three retirement reform bills authored by Rep. Kelly
“A secure retirement for every American should not be a partisan issue”
WASHINGTON — The U.S. House of Representatives this evening passed the Retirement, Savings, and Other Tax Relief Act of 2018 and the Taxpayer First Act of 2018 (also known as the House amendment to the Senate amendment to H.R. 88). The package includes major parts of legislation previously introduced by U.S. Representative Mike Kelly (R-PA) — founder and co-chairman of the House Retirement Security Caucus and a member of the House Ways and Means Committee — during the 115th Congress. These include the Family Savings Act of 2018 (H.R. 6757), the Retirement Enhancement and Savings Act of 2018 (H.R. 5282), and the Rightsizing Pension Premiums Act of 2017 (H.R. 3596).
Floor statement by Rep. Kelly on H.R. 88 (as prepared for delivery):
“Thank you, Mr. Speaker, for bringing this incredibly important legislation to the floor for consideration. I rise in strong support of H.R. 88, a comprehensive package that will, in many different ways, help millions of American families save more of their own money for their future.
“Among H.R. 88’s many features is a section that includes key elements of the three retirement reform bills that I have been proud to author, introduce, and champion over the last two years.
“One of those bills — the Family Savings Act — stood as one of the three pillars of Tax Reform 2.0, which this House passed with bipartisan support in September. With the passage of H.R. 88, much of that bill — along with my bipartisan Retirement Enhancement and Savings Act and my bipartisan Rightsizing Pension Premiums Act — will be one giant step closer to becoming law.
“In short, this package is a wonderful Christmas present for the American people that cannot come soon enough.
“As we know, Americans should be able to rely on three main sources of income to ensure full financial security during their retirement years: #1. Social Security, #2. Personal savings, and #3. Employer-sponsored savings plans. When it comes to that third source, an alarming number of Americans do not have access to an employer-provided 401(k) plan. And among those who do, a recent study found that 42% of them have less than $10,000 in their plan. Combined with the fact that more than 60% of Americans don’t have enough cash to cover a $1,000 emergency expense, the passage of today’s package is especially critical.
“Specifically, H.R. 88 will make it easier for small employers to pool together and offer retirement plans to their employees. This would help bridge the divide between the benefits that large employers might offer to their employees, and those that smaller employers only wish they could offer until now. Overall, this will help ensure that the next generation of Americans don’t outlive their savings in retirement.
“One of the things I remember so clearly from growing up is my parents saying to me and my siblings, ‘We never want to be a burden to you kids.’ And I thought as a young person that I could never think of my parents as a burden to me—not after everything they did for me. But just think about that for a minute: That generation – the ‘Greatest Generation’ – was telling us they never wanted to be a burden to the next generation.
“What we’re talking about today is relieving the burden on the next generation by making it easier for people to go into retirement feeling that they have enough income to enjoy their golden years. H.R. 88 will accomplish this goal by giving Americans the tools they need to help them save for the future and build a secure retirement.
“A secure retirement for every American should not be a partisan issue. So today, let us come together as a unified body and send this bill to the Senate for the sake of every American’s peace of mind during this season of peace.
“Before I conclude, I also want to highlight this bill’s inclusion of two important tax credit provisions that will specifically help my constituents in Western Pennsylvania: H.R. 88 will make permanent the Railroad Track Maintenance Tax Credit for short-line railroads, and will extend the Biodiesel Tax Credit. Each of these actions will directly support local economic growth and job creation in rural communities across America, including our district.
“Last December, Congress came together to pass historic tax reform that put more money back in the American people’s pockets. Twelve months later, let’s pass another historic bill to help them save that money for the years when they need it most! Let’s pass H.R. 88!”
General Summary of Provisions:
- Helps businesses provide retirement plans to their workers and helps families to start saving earlier and more throughout their lives. Includes provision expanding use of 529 accounts
- Modernizes the IRS and makes taxpayer service the focus of the agency by improving the ease and efficiency of the taxpayer experience when filing taxes, retrieving information, resolving issues, and making payments.
- Delay of Obamacare taxes
- 5-year delay of the Medical Device Tax
- 2-year delay of the Health Insurance Tax
- 1-year delay of the excise tax on high cost health plans (a.k.a. “the Cadillac Tax”)
- Repeal of the Tanning Tax
- Repeal of the Church Parking Tax
- Provision to allow tax-exempt charitable and educational organizations to make collegiate housing and infrastructure grants to specified tax-exempt social clubs, such as fraternities and sororities, in order to fund college and university housing.
- The Free Speech Fairness Act (repeal of the Johnson Amendment)
- Tax provisions related to disaster relief:
- Provides special rules allowing access to retirement funds, temporary suspension of limits on deductions for charitable contributions, allowance of deductions for personal casualty disaster losses, special rules for measurement of earned income for purposes of qualification for tax credits, and a special credit for employees to individuals and businesses affected by Hurricanes Florence and Michael, Typhoons Mangkhut and Yutu, California fires, Kilauea volcanic eruptions and earthquakes, and severe storms in Alabama, Hawaii, Indiana, North Carolina, Wisconsin, and Texas.
A section-by-section summary of H.R. 88 can be viewed here.
Organizations supporting H.R. 88:
60 Plus Association
AALU
AIG
Allianz Life Insurance Company of North America
American Association of Christian Schools
American Business Defense Council
American Commitment
American Council of Life Insurers
American Federation for Children
American Fraternal Alliance
Americans for Prosperity
Americans for Tax Reform
Ameritas
Archdiocese of New York
Archdiocese of Washington, DC
Arizona School Choice Trust
Association of Christian Schools International
Association of Mature American Citizens
Assurity Life Insurance Co.
AXA Equitable Holdings, Inc.
Boston Mutual Life Insurance Company
Boy Scouts of America
C.U.R.E. – Center for Urban Renewal & Education
California Catholic Conference
Campaign for Liberty
Canada Life Reinsurance
CAPE – Council for American Private Education
Catholic Education Partners
Center for a Free Economy
Center for Individual Freedom
Center for Worker Freedom
Cetera Financial Group
Children’s First Foundation
Children’s Scholarship Fund
Christian Schools International
Church Alliance
Coalition for Jewish Values
Concerned Women for America LAC
Connecticut Catholic Conference
Council for Citizens Against Government Waste
Digital Liberty
EdTaxCredit50
Ethics and Religious Liberty Commission
Faith & Freedom Coalition
Family Business Coalition
Family PAC Federal
Family Research Council – Key Vote
Fidelity Security Life Insurance Company
Florida Faith & Freedom Coalition
FreedomWorks
Genworth Financial, Inc.
Girl Scouts of the USA
Gleaner Life Insurance Society
Hannover Life Reassurance Company of America
Hawkeye Insurance Association
Hispanic Leadership Fund
Home School Legal Defense Fund
HSA Coalition
Independent Women’s Forum
Independent Women’s Voice
Insured Retirement Institute
Invest in Education Coalition
Jackson Holdings LLC
Jewish United Fund/Jewish Federation of Metropolitan Chicago
John Hancock
Lincoln Financial Group
LPL Financial
Massachusetts Mutual Life Insurance Company
Medico Insurance Company
MetLife
National Association for Fixed Annuities
National Association of Insurance and Financial Advisors
National Council of Farmer Cooperatives
National Life Group
National Rural Electric Cooperative Assoc.
National Taxpayers Union – Key Vote
Nationalwide Financial
NCEA – National Catholic Education Association
New York Family Research Foundation
New York Life Insurance Company
NTCA–The Rural Broadband Association
OneAmerica
Oxford Life Insurance Company
Pacific Life
Pan American Life Insurance Group
Penn Mutual
Principal Financial Group
Protective Life Insurance Company
Prudential Financial
Reaching America
Royal Neighbors of America
Sammons Financial Group
Securian Financial Group
Security Benefit Life Insurance Company
Small Business & Entrepreneurship Council
Symetra Life Insurance Company and Affiliates
Taxpayers Protection Alliance
Texans for Education Opportunity
Texas Public Policy Foundation
The Guardian Life Insurance Company of America
The Jewish Federations of North America
Thrivent
TIAA
Tradition Family Property, Inc.
Transamerica Corporation
UJA—Federation of New York, Inc.
United Benefits Group
Universal Guaranty Life Insurance Company
US Council of Catholic Bishops
USA Workforce Coalition
USCCB – U.S. Conference of Catholic Bishops
Voya Financial
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