Broad retirement legislation — the Setting Every Community Up for Retirement Enhancement (SECURE) Act — will become law as part of a year-end government spending package set for enactment within days. The legislation is substantially similar — if not identical — to the SECURE Act as passed by the House in May. A future GRIST article will provide full details of provisions included in the package.
Key provisions provide long-awaited nondiscrimination testing relief for closed defined benefit plans, promote “open” defined contribution (DC) multiple-employer plans, relax auto-enrollment rules and encourage lifetime-income options in DC plans. Other reforms aim to help individuals save more for retirement. For example, the starting age for required distributions will increase from 70-1/2 to 72, and individuals will be able to contribute to an IRA after age 70-1/2.
Enactment of the SECURE Act caps off several years of advocacy efforts by a broad range of stakeholders — including Mercer, which helped educate lawmakers about the importance of the reforms and the value of the employer-based retirement system. After winning overwhelming House approval in May, the legislation had stalled in the Senate for reasons unrelated to measure’s core reforms.
The House and Senate are expected to clear the legislation for President Donald Trump’s signature before government funding expires at midnight Friday.