Near the finish line? SECURE 2.0 included in $1.7B spending bill as Congress winds down

The highly anticipated SECURE 2.0 Act is one step closer to passage. The legislation was included in the $1.7 trillion omnibus appropriations bill for 2023, which Congress released on Tuesday and is expected to consider later this week.

Because the framework of the bill already had been agreed upon by both Democratic and Republican congressional leaders, it is expected to pass by the Friday deadline and be the final piece of legislation acted on by this Congress. If it doesn’t pass, another continuing resolution would be necessary to avoid a government shutdown.

“We are grateful to the many members of Congress and staff who worked tirelessly to get SECURE 2.0 included in the omnibus legislation expected to be enacted this week,” said Brian Graff, CEO of the American Retirement Association. “This important legislation will enhance the retirement security of tens of millions of American workers — and for many of them, give them the opportunity for the first time to begin saving.”

The 100-plus provisions in the SECURE 2.0 Act essentially combine three separate bills that have been worked on for more than a year: the Senate HELP Committee’s RISE & SHINE Act, the Senate Finance Committee’s Enhance Americans Retirement Now Act and the Securing a Strong Retirement Act from the House Ways and Means Committee.

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Included in the provisions are numerous changes, such as increasing the age for required minimum distributions to 75; allowing student loan payments to be treated as retirement plan contributions for the purpose of company matches; withdrawals for emergency expenses; automatic enrollment in retirement plans; higher catch-up contribution limits for older workers; and the creation of a retirement savings lost and found program.

The ARA noted that over the past two years, each of the four congressional committees with primary jurisdiction over retirement policy passed with unanimous or near-unanimous bipartisan support significant retirement-related provisions, demonstrating the importance of workplace retirement savings and its critical role in providing retirement security for the nation’s workers and their families.

“SECURE 2.0 provides impactful provisions that can strengthen the retirement readiness of millions of Americans during these trying economic times and beyond,” said Thasunda Brown Duckett, president and CEO of TIAA. “The thoughtful, wide-reaching legislation will help increase savings, ensure greater access to workplace retirement plans and provide more workers with an opportunity to receive a secure stream of income in retirement.

“This is an important bipartisan step forward on retirement security, and we urge members of Congress to swiftly unite on this bill and pass this legislation before the end of the year.”