A coalition of 60 financial services companies and associations today asked congressional leaders to “take quick action” to pass the SECURE 2.0 retirement savings act before the current Congress convenes for a final time in December.
The group including Fidelity, the Financial Services Institute, LPL Financial, Wells Fargo and a number of companies is hoping their unified request will encourage lawmakers to pass the bipartisan legislation before a new Congress convenes in January. In the midterm elections this month, Republicans wrested control of the House from Democrats, while the Senate will continue to be controlled by Democrats.
SECURE 2.0 (Securing a Strong Retirement Act of 2022) would increase when investors must begin taking their required minimum distributions (RMDs) to age 75, increase catch-up contribution limits and make it less expensive for small businesses to create retirement plans.
“We respectfully ask that you take quick action and make this proposal a top priority during the upcoming lame-duck session,” the coalition said in a letter to congressional leadership. The group was organized by the American Council of Life Insurers and assisted by the Insured Retirement Institute.
“We do not expect that the 2022 midterm election will affect Secure 2.0 legislation,” IRI spokesman Dan Zielinski said.
“Congressional proponents have publicly expressed the desire to get it done this year. The more significant wildcard is what other major legislation Congress will act upon in the last weeks of this session since SECURE 2.0 will likely be attached to a larger bill,” Zielinkski added.
Coalition members are hoping to persuade lawmakers not to pass the buck on the legislation to the divided Congress in 2023, which is expected to lead to gridlock in Washington, D.C.over the next two years, with some already expecting a bitter battle over issues such as raising the federal debt ceiling to lead to possible government closures.
The coalition told congressional leaders that "Americans are living longer, and many fear outliving their savings.
The added stress of the economic impact of the pandemic, continuing market volatility, and increasing longevity “demonstrate the need for Congress to consider policies to expand access to retirement savings,” the group said.
“Right now, the Senate and House have each passed [their version of the] bills with only minor differences that are easily worked out. There’s nothing contentious there,” Andy Friedman, founder and editor of The Washington Update, said during a recent webinar.