Lankford, Grassley, Hassan Give Small Businesses More Flexibility with Retirement Savings Options
WASHINGTON, DC – Senator James Lankford (R-OK) joined Senators Chuck Grassley (R-IA) and Maggie Hassan (D-NH) to introduce the Improving Access to Retirement Savings Act. This bill will build off the successful implementation of the SECURE Act and make improvements so that more organizations and small businesses can participate in multiple employer plans (MEPs).
“Oklahoma families and employers should have greater access to retirement plans that best fit their needs,” said Lankford. “By making sensible updates to the law, this legislation makes it easier for small businesses and nonprofits to offer plans and expand access, which gives Oklahomans the freedom to save more of their money for retirement sooner.”
“This legislation will help more Americans save for their retirement while also giving our small businesses and nonprofits another avenue to invest in their employees’ future financial security,” said Grassley. “Government should be doing everything it can to help Americans save more of their own hard-earned money. I’m proud to author this bipartisan bill that will help more Americans retire with peace of mind and independence.”
“No American should have to worry about affording retirement after a lifetime of hard work,” said Hassan. “That’s why I have joined my colleagues on both sides of the aisle in introducing this commonsense bill that helps expand retirement options. I will keep working to build support for this legislation and help strengthen retirement security for workers across New Hampshire.”
The Improving Access to Retirement Savings Act will allow more groups to participate in MEPs by allowing 403(b) plans, which are prevalent among tax-exempt organizations, to participate. It also clarifies that small employers that join an MEP may take the small employer pension plan start-up credit for their first three years in an MEP, regardless of how long the MEP has been in existence.
Additionally, this legislation allows a grace period to correct reasonable errors in administering automatic enrollment and escalation features when groups are enrolling in an MEP, provided they are corrected within nine and a half months of the end of the year in which the mistakes were made. Finally, it would provide employers additional time to make retroactive plan amendments that increase benefits for employees.
This legislation has support from the American Benefits Council, Insured Retirement Institute, American Council of Life Insurers and the American Retirement Association.