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November 10, 2021
2021-2058

House Education & Labor Committee approves retirement bill

The House Education & Labor Committee today (Wednesday, November 10) approved the Retirement Improvement and Savings Enhancement (RISE) Act (HR 5891), which seeks to make an array of improvements to the U.S. retirement system to better help workers and retirees plan and save for a secure retirement. The bill's provisions largely track HR 2954, the Securing a Strong Retirement Act, which was reported out by the Ways and Means Committee in May.

The legislation:

  • Establishes an online, searchable "Retirement Lost and Found" database at the Department of Labor to help workers locate their retirement savings as they move from job to job.
  • Allows 403(b) retirement plans to participate in multiple employer plans and pooled employer plans.
  • Ensures more part-time workers are offered opportunities to join retirement savings plans.
  • Clarifies rules regarding the recovery of inadvertent overpayments to retirees, minimizing hardships.
  • Enables employers to provide small financial incentives, such as low-dollar gift cards, to incentivize workers' participation in retirement plans.
  • Simplifies and clarifies reporting and disclosure requirements related to retirement plans.

In an opening statement, Chairman Bobby Scott (D-VA) mentioned the SECURE 2.0 Act, said it includes several provisions under Education & Labor jurisdiction, and said he has worked with Ranking Member Virginia Foxx (R-NC) to shape the Committee's proposals. Ranking Member Foxx called the bill targeted and balanced, noting that it reflected a bipartisan effort to make retirement more secure. She highlighted the multiple-employer plans (MEPS) provisions and "Retirement Lost and Found" database. Foxx said the bill is intended to assert the Committee's jurisdiction over certain provisions over the ERISA provisions of SECURE 2.0 and wed the changes with the Committee's own provisions ahead of consideration on the House floor. Chairman Scott said the bill will be combined with the SECURE 2.0 Act when it reaches the House floor.

Pramila Jayapal (D-WA), chair of the Congressional progressive Caucus and a main focus of recent reconciliation bill negotiations, lauded the bill for expanding 403(b)s by allowing nonprofits to set up MEPs for their employees.

A summary of the bill is available here.

The manager's amendment for HR 5891 approved at the markup is attached below and also available here.

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ATTACHMENT

Manager’s amendment for HR 5891

 

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