U.S. Rep. Vern Buchanan, R-Fla., teamed up with U.S. Rep. Ron Kind, D-Wis., on Tuesday to unveil the “Retirement Security Act of 2015” which, they say, will help small businesses offer retirement plans for employees. More than 39 million Americans currently work for businesses that do not offer retirement plans.
Buchanan’s and Kind’s bill would permit businesses with 500 or fewer employees to join multiple employer plans (MEPs) and would force the U.S. Treasury Department to cut down on the red tape for businesses to enter MEPs. The bill would also use incentives to expand retirement savings, including increasing the cap for employees whose company matches 401(k) contributions from 6 percent to 10 percent. The bill would also add a “saver’s” credit currently given to Americans who contribute to their IRA, 401(k)s and other retirement plans to the Form 1040EZ tax return, currently used by Americans making less than $100,000 and who do not have major tax issues.
Pointing to his home state of Florida, Buchanan said almost one out of every three seniors in Florida — more than 750,000 seniors — relies solely on Social Security for their income and his bill would ensure more Americans can save for their retirement.
“Too many Americans are entering their golden years without adequate financial security,” Buchanan said on Thursday. “This bipartisan, common-sense legislation will help hard-working men and women save for a comfortable retirement. As an employer myself for over 30 years, I have seen firsthand how costly and complex it can be to establish retirement plans such as 401(k)s. Government should be encouraging employers to do right by their employees and help them save for retirement – not discouraging them.”
Kind said the bill would also benefit small businesses as well as help Americans save.
“The bipartisan Retirement Security Act will help employers and workers alike,” Kind said. “A comfortable retirement is something everyone seeks to achieve, but for many small businesses, setting up a retirement savings plan can be a complicated and costly process.
“By making it easier for small businesses to offer savings plans and offering incentives to employees who save more of their earnings, more workers can build up their retirement savings and more small businesses can attract and retain employees,” Kind added.
The bill is being backed in the U.S. Senate by U.S. Sen. Susan Collins, R-Maine. The legislation has the support of the U.S. Chamber of Commerce, the American Council of Life Insurers and American Benefits Council and Principal Financial Group
Reach Kevin Derby at kderby@sunshinestatenews.com or follow him on Twitter: @KevinDerbySSN
