The American Society of Pension Professionals & Actuaries supports the introduction of the Shrinking Emergency Account Losses in 401(k) Savings Act of 2013 in the Senate.

The so-called SEAL Act was introduced March 19 before the U.S. Senate Committee on Health, Education, Labor and Pensions by Senators Nelson, D-Fla., and Enzi, R-Wyo. It would help safeguard the savings American workers have placed in their 401(k) plans by reducing the loss of savings from early hardship withdrawals and 401(k) plan loans outstanding when employment is terminated.

"More Americans save at work through an employer-sponsored retirement plan than in any other way. The power of their compounding retirement savings is weakened when the individual takes a hardship withdrawal from retirement savings or does not repay a loan from a 401(k) plan because it came due when employment was terminated," said Brian Graff, executive director and CEO of ASPPA in a written statement. "We are mindful that some employees have serious immediate financial needs. Therefore, we believe it is important to minimize the harm that comes from accessing retirement funds for non-retirement purposes. The SEAL Act would be an important step toward addressing this problem."