Senate tries to put SECURE retirement bill on fast track

Senate tries to put SECURE retirement bill on fast track
Supporters want to maintain momentum of 417-3 House approval.
MAY 31, 2019

Legislation that would bring about the biggest reforms in retirement policy in more than a decade could be headed toward quick passage in the Senate. Shortly after the bill — the Setting Every Community Up for Retirement Enhancement Act — passed the House on a 417-3 vote on May 23, it was set up for approval in the Senate by unanimous consent, a process known as "hotlining." The Senate didn't proceed to a vote before the Memorial Day recess because a couple members, including Sen. Ted Cruz, R-Tex., resisted. Mr. Cruz was upset that the House version of the bill removed two provisions related to expanding 529 college savings programs to cover home schooling and primary and secondary school expenses. Senate leaders are trying to overcome those objections and hotline the SECURE Act, according to supporters of the bill. "Despite the current hold up, there's strong bipartisan support in the Senate, and we hope that we'll get it on the fast track," said Chris Spence, senior director of government relations at TIAA. The bill has been the focus of a strong lobbying push by insurance groups. "There's a good chance this could be put on the [Senate] floor and passed with a significant bipartisan vote, as was exemplified in the House," said Paul Richman, chief government and political affairs officer at the Insured Retirement Institute. Among other provisions, the legislation would provide legal protections for employers to include annuities in retirement plans, make it easier for small businesses to band together to offer plans, and increase the age for required minimum distributions from 70 1/2 to 72. The legislation is largely similar to the Retirement Security and Enhancement Act, which has been introduced by Senate Finance Committee chairman Charles Grassley, R-Ia., and ranking member Ron Wyden, D-Ore. In statements after House approval of SECURE, both senators indicated they wanted the Senate to quickly pick up the House bill. Otherwise, if the Senate passed RESA and then reconciled RESA with the House-approved SECURE, it would eat up limited legislative days on the congressional calendar. "That's a huge challenge," said Kathleen Coulombe, vice president of federal relations for retirement security at the American Council of Life Insurers. "It's incredibly difficult for them to find floor time." The Senate wouldn't gain much from passing RESA separately. "It's a rare example of Congress being efficient," said Jason Rosenstock, partner at Thorn Run Partners, a lobbying firm. After Congress approves SECURE, it is likely to turn its attention to the next phase of retirement-security legislation, including a bill recently introduced by Sens. Robert Portman, R-Ohio, and Ben Cardin, D-Md.

Latest News

JPMorgan tells fintech firms to start paying for customer data
JPMorgan tells fintech firms to start paying for customer data

The move to charge data aggregators fees totaling hundreds of millions of dollars threatens to upend business models across the industry.

FINRA snapshot shows concentration in largest firms, coastal states
FINRA snapshot shows concentration in largest firms, coastal states

The latest snapshot report reveals large firms overwhelmingly account for branches and registrants as trend of net exits from FINRA continues.

Why advisors to divorcing couples shouldn't bet on who'll stay
Why advisors to divorcing couples shouldn't bet on who'll stay

Siding with the primary contact in a marriage might make sense at first, but having both parties' interests at heart could open a better way forward.

SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives
SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives

With more than $13 billion in assets, American Portfolios Advisors closed last October.

William Blair taps former Raymond James executive to lead investment management business
William Blair taps former Raymond James executive to lead investment management business

Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.