Senators Susan Collins, R-Maine, chair of the Senate Aging Committee, and Maggie Hassan, D-New Hampshire, have introduced the Retirement Security Act of 2019.
The bill would permit more businesses to join multiple employer plans (MEP), which the Senators say would help lower retirement plan costs by permitting businesses to pool their buying power and otherwise share administrative fees. The bill would protect members of a MEP from losing their tax benefits if another employer in the MEP fails to meet the minimum criteria necessary to obtain tax benefits.
The bill would also direct the Department of the Treasury to simplify and consolidate required plan notices in order to reduce costs, and it would permit employers to provide matches of up to 10%.
“As chairman of the Senate Aging Committee, ensuring that more people are better prepared for retirement is one of my top priorities,” Collins said. “Our bipartisan legislation would significantly improve the financial security of many Americans by reducing the cost and complexity of retirement plans, especially for small businesses.”
Collins noted that data from the Center for Retirement Research has found there is a $7.7 trillion gap between what Americans need for a secure retirement and what they actually have.