House passes bill to help workers with retirement savings
WASHINGTON — The House overwhelmingly approved a bill Thursday to promote retirement security by making it easier for small businesses and other companies to offer retirement plans.
The bipartisan bill, approved 417-3, also makes it easier for workers to transfer retirement plans when they change jobs and allows part-time workers to save for retirement. The measures also fix a provision of the 2017 tax cut law that inadvertently raised taxes on benefits received by family members of deceased military veterans.
Rep. Richard Neal, D-Mass., chairman of the tax-writing House Ways and Means Committee, called the bill the most significant retirement legislation in 15 years. With Thursday’s vote, “the House made significant progress in fixing our nation’s retirement crisis and helping workers of all ages save for their futures,” he said.
“Too many people find it difficult to save for retirement. Many don’t have retirement plans at all,” Neal said.
A report last year by the nonprofit Center for Financial Services Innovation said 4 in 10 adults have not saved for their retirement.
The bill now goes to the Senate. Republican Chuck Grassley of Iowa, chairman of the Senate Finance Committee, predicted quick passage.
House Speaker Nancy Pelosi said she was glad the bill would remove an unintended tax increase imposed on military families. Lawmakers from both parties wanted to change the provision after discovering it was included in the 2017 tax law.
“It is outrageous and unacceptable that children who have survived so much are now forced to pay thousands of additional dollars in taxes on their benefits,” said Pelosi, D-Calif.
Known as the Setting Every Community Up for Retirement Enhancement Act, or SECURE Act, the bill makes long-planned changes supported by both parties. Rep. Mike Kelly, R-Pa., said the measure will “help future retirees prepare for the golden years and make it easier for businesses to help in that effort.”