Tenney, Kildee Introduce the Retirement Investment in Small Employers Act On October 23, Representatives Claudia Tenney (R-NY) and Dan Kildee (D-MI) introduced the Retirement Investment in Small Employers Act (RISE Act) (H.R. 6007). The bill amends the formula used to determine how much an employer may claim for retirement start-up tax credits. These amendments would enable businesses with fewer than 10 employees to claim up to the maximum of $5,000 per year in start-up credits authorized by the SECURE 2.0 Act. In a press statement, Rep. Tenney said, “Congress must empower and reaffirm our commitment to small businesses across the country by taking steps to grant them a competitive edge in our economy. […] to enable micro-businesses across NY-24 and the nation to offer their employees robust retirement plans and allow their employees to save for the future.” Rep. Kildee called the bill a bipartisan “win for small business owners and workers alike.”
IRI is reviewing the legislation and will raise the bill with its Government Affairs Committee.
IRI will provide updates as necessary on the RISE Act.
Representative Claudia Tenney
Representative Dan Kildee
Retirement Savings for Americans Act Reintroduced in the House
Representatives Llyod Smucker (R-PA) and Terri Sewell (D-AL) reintroduced the Retirement Savings for Americans Act last week. The bill would create a federal program to provide eligible workers with access to portable, tax-advantaged retirement savings accounts. The bill would automatically enroll full and part-time workers and make independent workers eligible for participation. These accounts, according to a press statement, would provide participants with a menu of “low-fee” investment options participants will be able to choose from. Low- and middle-income workers would also be eligible for a 1 percent automatic contribution and up to a 4 percent matching contribution in the form of a tax credit.
A companion bill was introduced earlier this month in the Senate by Senators John Hickenlooper (D-CO) and Thom Tillis (R-NC). IRI has not taken a position in favor or against the Retirement Savings for Americans Act. IRI has said that it agrees that there is a challenge in providing opportunities for workers – particularly employees of small businesses – to save through a workplace retirement plan and that more needs to be done to expand opportunities for those workers to save. However, IRI believes that the solution offered by the Retirement Savings for Americans Act to provide workers eligible for a savings account established and maintained by the Treasury Department is not an approach IRI would support to address this challenge.
Instead, IRI supports an approach that utilizes the existing private sector retirement system to provide a solution rather than a federal government-sponsored solution. The proposal offered by Representative Richard Neal (D-MA), which would generally require all but the smallest of employers to maintain an automatic retirement savings plan, would provide this solution. IRI has long supported Rep. Neal’s proposal. While Rep. Neal’s bill has not yet been reintroduced, it is expected sometime this year.
IRI will continue to monitor for any action on the Retirement Savings for Americans Act.
House Capital Markets Subcommittee to Examine SEC’s Agenda
The House Financial Services Capital Markets Subcommittee has scheduled a hearing for 10 a.m. ET on November 2 to examine the SEC’s approach to rulemaking under Chairman Gary Gensler’s leadership and its regulatory activities since 2021. The hearing can be viewed here.
IRI will monitor the hearing and provide any necessary updates.