After years of negotiation, lawmakers introduced a retirement security package as part of a $1.7 trillion omnibus spending bill early Tuesday.

The package, referred to as SECURE 2.0, includes several provisions, such as expanding automatic enrollment in 401(k) and 403(b) plans, enhancing the tax credit for small businesses launching a retirement plan and allowing employers to make matching contributions to a 401(k) plan, 403(b) plan or SIMPLE IRA based on qualified student loan payments.

The package combines three bipartisan bills from both the House and Senate, including the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg Act, or RISE & SHINE Act, which advanced out of the Senate Health, Education, Labor and Pensions Committee in June.

“I’ve heard from too many people who are struggling to make ends meet and had to raid savings meant for their futures, not to mention countless others who have never had access to an employer-sponsored retirement plan,” said Sen. Patty Murray, D-Wash., chairwoman of the HELP Committee, in a statement. “That’s why I fought so hard to make sure the omnibus includes policies to help put families back on solid financial footing like expanding access to retirement plans, increasing transparency on lump-sum buyouts from pension plans, helping families save for a rainy day, and more.”

SECURE 2.0 builds on the original SECURE Act, which Congress passed in 2019. In March, the House overwhelmingly passed the Securing a Strong Retirement Act of 2022 in a 414-5 vote. Ways and Means Committee Chairman Richard Neal, D-Mass., and ranking member Kevin Brady, R-Texas, introduced the bipartisan bill to expand on the previous retirement package, prompting the creation of several bills to build SECURE 2.0.

In addition to the HELP Committee’s RISE & SHINE Act, the Senate Finance Committee also advanced a bill out of committee in June, known as the Enhancing American Retirement Now Act, or EARN Act.

Melissa Kahn, managing director of retirement policy for State Street Global Advisors’ defined contribution team, noted that SECURE 2.0 “has provisions dealing with access and coverage, savings sufficiency, lifetime income and, of course, financial wellness.”

Read More @Pionline