Retirement Bill Needs Support to Avoid ‘Tsunami,’ Lawmaker Says

Congress needs to pass a major legislative package if it wants to stave off a coming retirement savings crisis, Rep. Mike Kelly (R-Pa.) said July 19.

He was referring to the Retirement Enhancement Savings Act (H.R. 5282), which was first introduced in 2016 and then again in both the House and the Senate in March. Kelly is the sponsor of the House version of RESA.

The bill gives workers more ways to save for retirement, makes joining multiple employer plans easier for small businesses, and provides tax relief for employers that sponsor traditional pension plans.

During a U.S. Chamber of Commerce forum, Kelly expressed concern about an estimated $4.3 trillion retirement savings deficit in the U.S., citing a 2015 study by the Employee Benefit Research Institute.

“We will not be able to sustain any type of future if we have that many folks in that much trouble,” he said, advocating for RESA. “You don’t want to wait until that tsunami hits you. You want to make sure that you act on it ahead of time.”

Kelly told Bloomberg Law after his address that the measure has support, as it makes its way for a full vote in the House and Senate.

The Pennsylvania congressman also sought input from the audience about how to push the legislation or alternatives to the proposal.

“Is there anybody that can give me a selling point?” he said. “I’d like to open it up to you all. Give me some ideas of where you think we can go with this. Give me some ideas of challenges that you think we’re going to have with this or give me some ideas of a reason that that is not a good idea to prepare for someone’s retirement.”

Congressional Collaboration

Four bipartisan bills similar to RESA were recently introduced and co-sponsored by Sens.Heidi Heitkamp (D-N.D.), Cory Booker (D-N.J.), Tom Cotton (R-Ark.), and Todd Young(R-Ind.).

Kelly told Bloomberg Law that he plans to look into the Senate proposals.

“We’ll probably see some type of interaction with them at some point,” he said. “We have to [work with the Senate]. The great stopping place is over there.”

The bill sponsored by Cotton would work with RESA if passed, according to a July 18 email from a spokeswoman for Heitkamp. She also said the other three plans would address other retirement issues.

The bundle also could be a part of the next round of tax reform, along with RESA. House Ways and Means Committee Chairman Kevin Brady (R-Texas) announced July 18 that he plans to include RESA in his draft “tax 2.0" legislative proposal to be released next week.