Proposed modifications to retirement system get approval from Senate committee, setting stage for potential passage of ‘Safe 2.0’ this yr

Samuel Corum/Bloomberg

The Senate Finance Committee on Wednesday unanimously authorised a sequence of proposals that make full congressional passage of a retirement-improvement package deal extra possible this yr.

The measure, referred to as the Enhancing American Retirement Now Act, incorporates some provisions which can be the identical as or much like these proposed within the Home, which handed the Securing a Robust Retirement Act (H.R. 2954) in late March in a bipartisan 414-5 vote.

Often called “Safe 2.0,” that invoice is meant to construct upon the unique Safe Act of 2019, which ushered in modifications geared toward rising retirement safety by rising entry to office financial savings plans, amongst different efforts.

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The EARN Act “consists of greater than 70 proposals geared toward serving to extra People save — the fruits of months of collaboration between nearly each member of the committee, Democrat and Republican,” stated Finance Committee Chairman Ron Wyden, D-Ore., in opening remarks on the Wednesday listening to.

Committee approval of the EARN Act comes a few week after the Senate Well being, Training, Labor and Pensions Committee superior one other retirement-related measure referred to as the Rise & Shine Act (S. 4353). Collectively, the payments are the Senate’s model of Safe 2.0.

Many provisions on the Senate aspect are the identical as what cleared the Home, together with one to make it simpler for employers to contribute to 401(ok) and comparable office plans on behalf of staff who’re making pupil mortgage funds as an alternative of contributing to their retirement plan.

Different similarities between the 2 chambers’ proposals embody permitting older employees to save lots of extra by so-called catchup contributions to their 401(ok) and elevating the age when savers should start taking required minimal distributions from their retirement accounts.

Nevertheless, the variations between the 2 chambers’ proposals would should be labored out earlier than full congressional approval may happen. Senate lawmakers stated throughout the Wednesday committee listening to that they’re in dialog with their friends within the Home to succeed in settlement on a closing model.

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