New Bipartisan Retirement Legislation Introduced

May 24, 2021

On Friday, May 21, Senators Ben Cardin (D-Md.) and Rob Portman (R-Ohio) rolled out new bipartisan retirement security legislation. Retirement savings and security issues is one area the two parties share some commonalities and may be able to work together over the next year to craft a measure that both sides will support.

The new legislation is similar to a House bill that recently passed the Ways and Means Committee (H.R.2954). The Cardin-Portman bill gradually increases the age at which people need to start making minimum distributions from their retirement plans, from the current 72 to 75 by 2032.

The bill also includes some new tax incentives, specifically a credit for employers that offer expansive automatic enrollment plans and a credit for companies that automatically reenroll employees. The legislation would also increase eligibility for the Saver’s Credit for lower-income people and expands credit for smaller companies starting new plans.

The bill comes just a few days after another group of bipartisan Senate tax writers released a retirement bill. Sens. Chuck Grassley (R-Iowa), Maggie Hassan (D-N.H.) and James Lankford (R-Okla.) introduced the Improving Access to Retirement Savings Act. The legislation would make improvements allowing more organizations and small businesses to participate in multiple employer plans (MEPs).

Although Senate Finance Committee Chairman Ron Wyden (D-Ore.) has not laid out his own retirement savings plan yet, lawmakers will most likely add a retirement bill onto a broader package, either this year or next, depending on when and if they reach an agreement.