Industry Leaders Urge Quick Action on SECURE Act

Ninety-one CEOs, presidents and chairpersons representing a broad coalition of corporations, private companies and trade associations have added their names to the growing list calling on the Senate to pass the SECURE Act.

In a Nov. 5 letter to Senate Majority Leader Mitch McConnell (R-KY) and Minority Leader Charles Schumer (D-NY), these industry leaders – including American Retirement Association CEO Brian Graff – pressed for quick action on the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 (H.R. 1994), noting that it will help ensure millions of Americans’ financial security. 

“If the SECURE Act is not signed into law, more than 700,000 small business workers will not save for retirement at work, more than four million workers in private-sector pension plans will be at risk of losing future benefits, 1,400 religiously affiliated organizations will be at risk of losing access to their defined contribution retirement plans, and more than 18,000 children and spouses of fallen service members will continue to be economically disadvantaged by unfair taxation on their survivor benefits,” the letter warns.

It further emphasizes that the SECURE Act would also allow older workers and retirees to contribute more to their retirement accounts, increase 401(k) plan coverage to part-time employees and help new parents better manage expenses when they give birth or adopt a child. 

Additionally, the group notes that the legislation passed the House of Representatives with overwhelming bipartisan support and builds on the Senate’s Retirement Enhancement and Savings Act (RESA) introduced by the Finance Committee Chairman, Sens. Charles Grassley (R-IA), and its Ranking Member, Sen. Ron Wyden (D-OR). Both RESA and the SECURE Act contain numerous overlapping provisions that are supported by members from both parties.

As for that growing list, last month a group of seven Republican senators called on Sen. McConnell to take action on the SECURE Act “as soon as possible.” Sen. Grassley wrote an op-ed posted on the Fox Business News website calling on his Senate colleagues to take immediate action. Additionally, a recent study by the Nationwide Retirement Institute found that nearly 60% of small business owners think the SECURE Act would have a positive impact on their ability to offer a 401(k) plan.