14 IRI-ADVOCATED PROVISIONS INCLUDED IN SECURE 2.0 LEGISLATION

Congress to Vote on Omnibus Appropriations Legislation with Retirement Language

 WASHINGTON, D.C. – Among the major provisions of retirement security legislation included in an omnibus appropriations measure released today are fourteen specific issues advocated by the Insured Retirement Institute (IRI).

The omnibus measure includes “Secure 2.0” retirement provisions (Division T – Pages 2046 – 2404) negotiated from among three bills voted on by the House of Representatives and Senate committees. Fourteen of those provisions were specifically advocated by IRI and outlined in the trade association’s 2022 Retirement Security Blueprint.

“The common-sense solutions in this legislation are another step forward in addressing our nation’s retirement crisis and will make a real difference in the financial future of America’s workers and retirees,” said Wayne Chopus, IRI President and CEO.

IRI-Advocated Retirement Provisions in 2023 Omnibus Appropriations Legislation:

1. Reform the required minimum distribution (RMD) rule.
2. Authorize the formation of 403(b) pooled employer plans (PEPs).
3. Enhance the start-up tax credit to encourage small businesses to establish workplace plans.
4. Clarify the retirement plan start-up tax credit eligibility period for small employers who join multiple employer plans (MEP) or PEPs.
5. Increase automatic enrollment contribution rates and enhance automatic plan features.
6. Help employees save for retirement while repaying student loans.
7. Increase the catch-up contribution limits for baby boomers.
8. Expand opportunities for military spouses and ready reserve members to maximize their retirement savings.
9. Establish a national online lost and found for America’s workers’ retirement accounts.
10. Allow broader use of qualifying longevity annuity contracts (QLAC’s.)
11. Facilitate the use of low-cost exchange traded funds (ETF) investments in variable annuities.
12. Examine opportunities to make long-term care insurance more tax-advantaged, affordable, and accessible.
13. Provide opportunities to accumulate or access emergency savings while maintaining retirement savings.
14. Allow penalty-free withdrawals from retirement accounts as relief from natural disasters.

“This legislation will deliver billions in additional retirement savings to help ease the insecurity and anxiety felt by workers and retirees about having enough money to last throughout retirement,” Chopus added.

The bill is projected to increase retirement savings by billions of dollars over ten years for workers and retirees.

• $40.5 billion for new workers with boosted auto-enrollment
• $20.5 billion for small business employees through modified tax credits
• $9 billion for older workers (people 62-64) through higher catch-up contributions
• $8.5 billion for student loan borrowers through the employer match for student loan repayment
• $2.7 billion for low- and middle-income earners through the reform and promotion of the Saver’s Credit
• $1.5 billion for long-term, part-time workers by reducing the required time on the job from three years to two for plan access
• $865 million for nonprofit workers through the expansion of multiple employer plan rules to include 403(b) plans
• $117 million for military spouses through the new tax credit for small employers to accelerate access to retirement plans

The omnibus appropriations bill also includes the Registration for Index-Linked Annuities (RILA) Act (Division AA – Pages 2726 – 2730). That measure directs the Securities and Exchange Commission (SEC) to devise a new form for annuity issuers to use when filing registered index-linked annuities (RILAs).

Under current SEC rules, these and other innovative new products must be registered using forms designed primarily for equity offerings and therefore require extensive information that is not relevant to prospective annuity purchasers. These forms also require disclosure of financial information prepared in accordance with generally accepted accounting principles (GAAP), which many insurers are not otherwise required to produce.

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Section-by-Section review of Secure 2.0 Provisions in omnibus appropriations (Senate Finance Committee)

American Council of Life Insurers Analysis of the JCT’s Revenue Estimate