Senate Finance Committee Issues Report on Retirement Enhancement, Savings Act
Excerpts of the report follow:
I. LEGISLATIVE BACKGROUND
Background and need for legislative action
Background--Based on a proposal recommended by Chairman Hatch, the
Need for legislative action--While many Americans have accumulated significant amounts in tax-favored retirement savings vehicles, studies show that many Americans have little, if any, retirement savings. Workplace retirement plans provide an effective way for employees to save for retirement, but not all employees have access to a plan, and, of those who do, some do not participate. Moreover, the shift in recent decades from employer-sponsored defined benefit plans, under which the default form of benefits is an annuity, to defined contributions plans, which generally do not offer annuity benefits, creates the risk of employees outliving their retirement savings. The Committee believes that legislation is necessary to provide new incentives for employers to adopt retirement plans (including ways to reduce the costs associated with having a plan), new incentives for workers to contribute to workplace plans and individual retirement arrangements, and other measures to further retirement income security.
Issues relating to retirement savings were the focus of the report issued last year by the Committee's
1The report is available at http://www.finance.senate.gov/imo/ media/doc/The%20Savings %20& %20Investment%20Bipartisan%20Tax%20Working%20Group%20Report.pdf.
S. 1270, 113th Cong., the Secure Annuities for Employee (or SAFE) Retirement Act of 2013, sponsored by
S. 1970, 113th Cong., the Retirement Security Act of 2014, sponsored by Senators Collins and Nelson;
S. 1979, 113th Cong., the
S. 2855, 113th Cong., the Retirement Security Preservation Act of 2014, sponsored by Senators Cardin and Portman;
The Retirement Improvements and Savings Enhancements (or RISE) Act of 2016, a discussion draft issued by
S. 324, 114th Cong., the Shrinking Emergency Account Losses (or SEAL) Act of 2015, sponsored by Senators Enzi and Nelson;
S. 609, 114th Cong., the Volunteer Responder Incentive Protection Act of 2015, sponsored by Senators Schumer and Collins;
S. 1317, 114th Cong., the Lifetime Income Disclosure Act, sponsored by Senators Isakson and Murphy;
S. 3025, 114th Cong., the Graduate Student Savings Act of 2016, sponsored by Senators Warren and Lee;
S. 3152, 114th Cong., the Empowering Employees through Stock Ownership Act, sponsored by Senators Warner and Heller;
S. 3181, 114th Cong., the S Corporation Modernization Act of 2016, sponsored by Senators Thune, Cardin and Roberts; and
S. 3307, 114th Cong. (an act to avoid duplicative annual reporting), sponsored by Senators Warner and Collins.
In addition, as noted below, the Committee has held hearings at which it received testimony regarding retirement savings. These legislative proposals and hearings and the
Hearings
On
On
II. EXPLANATION OF PROVISIONS
III. BUDGET EFFECTS OF THE BILL
A. Committee Estimates
In compliance with paragraph 11(a) of rule XXVI of the Standing Rules of the
B. Budget Authority and Tax Expenditures
Budget authority
In compliance with section 308(a)(1) of the Budget Act, the Committee states that the provisions of the bill relating to the Tax Court and PBGC premiums for CSEC plans involve new or increased budget authority.
Tax expenditures
In compliance with section 308(a)(1) of the Budget Act, the Committee states that certain provisions affect the levels of tax expenditures, as shown in the revenue table in Part A.
C. Consultation With Congressional Budget Office
In accordance with section 403 of the Budget Act, the Committee advises that the
IV. VOTES OF THE COMMITTEE
In compliance with paragraph 7(b) of rule XXVI of the Standing Rules of the
Ayes: Hatch, Grassley, Crapo, Roberts, Enzi, Cornyn, Thune (proxy), Burr (proxy), Isakson, Portman,
V. REGULATORY IMPACT AND OTHER MATTERS
A. Regulatory Impact
Pursuant to paragraph 11(b) of rule XXVI of the Standing Rules of the
Impact on individuals and businesses and personal privacy
The bill includes various provisions relating to tax- favored retirement savings, including provisions designed to expand access to employer-sponsored plans and IRAs, to encourage greater participation in tax-favored arrangement, to preserve funds held in tax-favored form, and to help ensure that savings are sufficient to last through retirement. The bill also contains provisions relating to the
The provisions of the bill do not impact personal privacy.
B. Unfunded Mandates Statement
This information is provided in accordance with section 423 of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104- 4).
The Committee has determined that the revenue provisions of the bill do not impose any Federal private sector or intergovernmental mandates on State, local, or tribal governments within the meaning of the Unfunded Mandates Reform Act of 1995.
C. Tax Complexity Analysis
Section 4022(b) of the Internal Revenue Service Reform and Restructuring Act of 1998 ("
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In the opinion of the Committee, it is necessary in order to expedite the business of the
The full text of the report is found at: https://www.congress.gov/congressional-report/114th-congress/senate-report/375/1?r=8.
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