U.S. Rep. Vern Buchanan (R-FL) on March 27 sponsored a bipartisan bill that he says would make it easier and less costly for small businesses in the United States to set up and offer retirement benefits to their employees.
“Unfortunately, too many hard-working Americans enter retirement without adequate savings,” Rep. Buchanan said on Wednesday. “It is imperative we provide as many resources as possible to help folks prepare for their golden years and invest in their future.”
The Retirement Security for American Workers Act, H.R. 1907, cosponsored by U.S. Rep. Ron Kind (D-WI), would permit businesses to join together on multiple employer plans, or MEPs, which allow them to share the administrative responsibilities and associated costs of offering a retirement plan to their employees.
Rep. Buchanan cited information from the Pew Charitable Trusts that says up to 35 percent of private-sector workers over the age of 22 work for a company that doesn’t offer a retirement plan, while more than 40 percent of millennials don’t have access to an employer-sponsored retirement plan.
Conversely, AARP says that workers are 15 times more likely to save when they have access to a retirement plan, according to Rep. Buchanan’s statement.
“The American people need improved access to retirement savings,” said the congressman. “Congress should approve this bipartisan legislation and help retirees reach a stronger state of financial stability.”
Reps. Buchanan and Kind previously introduced the same-named bill during the 114th and 115thCongresses, but both stalled in committee reviews.
The reintroduced H.R. 1907 has been referred for consideration to both the U.S. House Education and Labor Committee and the U.S. House Ways and Means Committee.