SECURE 2.0 continues to progress through Congress

A summary of the House and Senate bills – July 2022

WORKPLACE THOUGHT LEADERSHIP

On March 29th, the House of Representatives, by a near-unanimous vote, passed the Securing a Strong Retirement Act of 2022 (“SSRA”) or as it is more commonly referred to, “SECURE 2.0”. This legislation continues the themes and reforms that began with the 2019 SECURE Act, focusing on getting more participants into the retirement system, finding ways for them to accumulate more assets, and then ensuring they have access to those assets when retirement comes.

These themes are of keen interest to the Senate too, as they have now introduced their own legislation comparable to the House bill. For jurisdictional reasons, the Senate has introduced two bills – the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg Act (the “RISE & SHINE Act”) from the Health, Education, Labor and Pensions (HELP) Committee; and the Enhancing American Retirement Now Act (the “EARN Act”) from the Finance Committee. Taken together, these represent the Senate’s version of SECURE 2.0.

While SECURE 2.0 has far-reaching implications for recordkeepers, plan sponsors, and plan participants, the attached article summarizes the key common themes across the House and Senate bills, as well as the critical differences that exist and what happens next. Also included is a detailed comparison of the provisions within the bills that impact employer sponsored plans.

For plan sponsor and investment professional use only.
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