Major Organizations Voice Support for Kelly Bill to Make Retirement Saving Easier

Mar 21, 2018

WASHINGTON — More than a dozen organizations from across America have endorsed new bipartisan legislation introduced by U.S. Representative Mike Kelly (R-PA), a member of the House Ways and Means Committee and co-chairman of the House Retirement Security Caucus. The bill – the Retirement Enhancement and Savings Act of 2018 (H.R. 5282, also known as RESA) – will modernize and strengthen the employer-provided, private sector pension system to expand retirement savings options for working Americans to help prepare for their future. Rep. Kelly introduced the bill in the House on March 14, 2018, with Rep. Ron Kind (D-WI). The Senate companion was introduced by Senate Finance Committee Chairman Orrin Hatch (R-UT) and Ranking Member Ron Wyden (D-OR) earlier this month. A previous version of the bill was unanimously advanced out of the Finance Committee in September 2016.

Statement by Rep. Kelly:

“I am very grateful that so many prominent organizations are strongly supporting this bipartisan bill to make retirement saving easier and more accessible. Far too many Americans face challenges in saving for their future because they don’t have access to a private sector workplace retirement plan. To ensure full financial security during their golden years, Americans should have multiple sources of retirement income—including Social Security, personal savings, and employer-sponsored savings plans. RESA would expand opportunities for workers to save through workplace retirement plans and go a long way toward helping families overcome the obstacles they face in properly preparing for their future. This is about helping every American enjoy full retirement security and peace of mind in the years when they deserve it most.”

Here’s a sample of what national organizations are saying about RESA:

AARP:

“AARP is pleased to support the Retirement Enhancement and Savings Act of 2018. … RESA is an important step to improving retirement policy. RESA includes provisions to encourage employers to offer retirement plans with automatic enrollment and adequate deferral amounts. It also will permit employers to join together and create what are known as multiple employer pension plans – a single plan in which a pooled provider will assume the primary fiduciary duties, making it easier for smaller employers to sign up and offer automatic savings and low cost investment savings to workers and their families.”

American Council of Life Insurers:

“The need for this legislation is clear. Every day 10,000 Americans will reach age 65, and half will live to age 85 or older. Without help, many people throughout the country and across the economic and political spectrum will be unprepared for retirements that could last 20, 30 years or more. Through the Retirement Enhancement and Savings Act, more American workers will have access to an employer-sponsored retirement plan to help them save for their retirement. Enacting RESA will help to increase savings and provide important retirement planning information to workers.”

American Retirement Association:

“The Retirement Enhancement and Savings Act (RESA) includes several provisions that when taken together will make it easier for small businesses to adopt and maintain a workplace retirement savings plan. … All these provisions are sorely needed because small business owners face real challenges when deciding to provide retirement benefits for their workers and these new policies will help business owners make that critical decision with more certainty, clarity, and confidence.”

Bipartisan Policy Center:

“This bill represents a grab bag of overdue changes to today’s retirement savings system. The reforms would improve retirement security prospects for millions of Americans. Bipartisan efforts like this show a real desire to improve America’s savings and retirement system, which currently leaves far too many people at risk of running out of money during what are supposed to be their golden years.”

The Church Alliance:

"On behalf of the more than one million clergy and church lay workers who rely on Church Alliance members’ denominational benefit plans to save for retirement, thank you for introducing the Retirement Enhancement and Savings Act (“RESA”), H.R. 5282. In particular, we would like to thank you for including a provision, Title I, Section 113, that would make an important clarification to the retirement income account rules relating to church-controlled organizations. We urge that this legislation be advanced at the earliest opportunity."

Hispanic Leadership Fund:

“We have moved into a new economy, and there are projections that this movement will continue and accelerate. Our private retirement system needs to be updated to address this new economy to make sure that workers have viable options to save for a secure retirement. … In addition to having passed the Senate Finance Committee unanimously, many of the provisions in RESA either originated in House bills or have been subsequently introduced on the House side on a bipartisan basis. RESA is a completely bipartisan way to open the door to increased savings for workers in the new economy.”

Insured Retirement Institute:

“Americans today face many challenges in saving for retirement because they do not have the opportunities or access to do so through a private-sector workplace retirement plan. The enactment of RESA would go a long-way in helping Americans to overcome the obstacles they now face in saving for their retirement. RESA’s common-sense measures will help Americans by expanding opportunities to save for retirement; increase access to lifetime income products; help savers make more-informed decisions about their finances for retirement and enhance features of workplace retirement plans.”

Society for Human Resource Management:

“RESA includes many retirement provisions that enjoy bipartisan and bicameral support. The bill encourages small employer retirement plan coverage, increases retirement savings, enhances worker participation and education, and facilitates retirement income security. … Taking steps to improve the current employer-based retirement system is more important now than ever before. Every day, between now and the year 2030, 10,000 people will reach age 65. RESA is a proactive approach that will enhance the current system.”

RESA is also supported by the following organizations:

Boy Scouts of America

Girl Scouts of the USA

Christian Schools International

The Church Alliance

Financial Services Roundtable

Financial Services Institute, Inc.

Hawkeye Insurance Association

The Jewish Federations of North America

The Jewish United Fund/Jewish Federation of Metropolitan Chicago

National Council of Farmer Cooperatives

National Rural Electric Cooperative Association

NTCA – The Rural Broadband Association

Plan Sponsor Council of America

SPARK Institute

United Benefits Group

NOTE: A section-by-section summary of RESA can be viewed here.

 

###