Senators introduce SECURE 2.0 companion

Less than two weeks after releasing a discussion draft, leaders of the Senate Health, Education, Labor, and Pensions Committee introduced a retirement security bill that will likely serve as a piece of the Senate's SECURE 2.0 package.

Sens. Patty Murray, D-Wash., committee chairwoman, and Richard Burr-R-N.C., the committee's ranking member, introduced the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg Act, or RISE & SHINE Act, and said their committee will markup the bill on June 14.

"I look forward to marking this bill up in committee next week and working with our colleagues to pass it into law, along with other steps to strengthen the financial security of workers, retirees, and families in Washington state and across the country," Ms. Murray said in a news release.

The package builds off provisions in the House-passed Securing a Strong Retirement Act of 2022, known as SECURE 2.0, as well as the Retirement Improvement and Savings Enhancement Act, or RISE Act, which was introduced in the House in November, and the Retirement Security & Savings Act, reintroduced in May 2021 by Sens. Ben Cardin, D-Md., and Rob Portman, R-Ohio.

The House passed its SECURE 2.0 bill in March in 414-5 vote. The bipartisan package expands on the Setting Every Community Up for Retirement Enhancement Act, known as the SECURE Act, which Congress passed and was signed into law in late 2019.

The RISE & SHINE bill features a slew of provisions included in previously introduced bills including allowing 403(b) plans to participate in multiple employer plans; reducing the requirement for part-time workers to participate in an employer's retirement savings plan to two years of service from three years; permitting employers to offer workplace emergency savings accounts linked to defined contribution plans; and requiring pension plan sponsors to provide participants and retirees with key information when offering lump-sum buyouts.

The bill would also allow employers every three years to automatically re-enroll workers who previously opted out of a retirement plan.

"Financial planning has never been more important as Americans continue to face historic inflation on gas, groceries, and other everyday essentials," Mr. Burr said in the news release. "That's why I'm proud to work with Senator Murray on this significant, bipartisan retirement package to ensure current and future retirees have the information and resources they need to optimize savings for their golden years."

The Senate Finance Committee is also expected to introduce its own retirement security bill. The two committee bills will likely form the basis of the Senate's SECURE 2.0 package.