Sep 27 2018
Washington, DC — Today, Congressman Jim Renacci (R-OH) spoke on the House floor in support of H.R. 6757, the Family Savings Act of 2018. The act, which is part of the Tax Reform 2.0 legislative package, included a bill authored by Renacci — the Retirement Security for American Workers Act. The bill would help American families save for the future, and as a small businessman for over 30 years Renacci understands the importance of providing retirement options to hardworking Americans.
Read the Congressman’s floor speech below:
“Mr. Speaker, I rise in support of my good friend Representative Mike Kelly’s H.R. 6757, the Family Savings Act. Mr. Kelly and I have been champions of helping more Americans gain access to retirement savings since coming to Congress in 2011 and I am proud of the bill before us today.
Included in this legislation is the bipartisan Retirement Security for American Workers Act that I introduced along with my friends -Representatives Buchanan, Neal, and Kind for the past two Congresses.
Unfortunately, there are still too many Americans who do not have access to a retirement savings plan through their employer. In fact, nearly a third of the private sector workforce lacks access to an employer-sponsored plan, with even less Americans having access if they work for a small business.
Not having access to an employer-sponsored plan significantly increases the chances that an individual fails to put aside money for retirement. For many Americans, this means that they are vastly unprepared to retire comfortably.
From an employer’s perspective, not being able to offer a retirement plan makes it much more difficult to recruit and retain quality employees.
I have heard from CBIZ, a financial services and business consulting company headquartered in Cleveland, Ohio, that too often small businesses want to provide retirement plans to their employees, but the cost and administrative burden are significant roadblocks when making this decision. That is why it is important that Congress acts to remove some of the red tape under current law that makes it difficult for business owners to provide retirement savings.
The Retirement Security for American Workers Act that is included in the bill before us today will help do just that.
This provision will allow two or more companies that may not be in the same industry to join together in order to offer either a defined contribution retirement plan or an IRA – often referred to as Open Multiple Employer Plans. Under current law and Department of Labor interpretation, employers who do not have a “nexus” are not able to band together and provide a pooled retirement plan.
By eliminating this Department of Labor requirement, this bill will allow more companies to provide retirement plans by allowing businesses, especially small businesses, to take advantage of cost and administrative efficiencies that often prevent businesses from offering a 401k.
Additionally, the Open MEPs language in this bill will provide relief from the “one bad apple” rule that punishes all employers in a pooled retirement plan if just one employer fails to meet requirements.
This legislation will incentivize more businesses to join together and provide retirement plans to their employees. These common-sense proposals, along with other provisions within the Family Savings Act, will unlock the opportunity for more Americans to save for their future.
I thank the Chairman for his leadership in bringing this legislation to the floor today and I encourage my colleagues to support this legislation.”
You can watch the full floor speech here.