House Approves Family Savings Act

WASHINGTON, D.C., (September 27, 2018)—"The Family Savings Act (H.R. 6757) passed by the U.S. House of Representatives is an important first step toward enhancing America’s retirement system.

“This bill comes at a critical time for retirement savers. Every day, 10,000 Americans reach age 65. And, many people can expect to live 20 years, 30 years or longer in retirement. The Family Savings Act will go a long way toward helping Americans save for retirement and ensure their savings last a lifetime.

“The bill will expand access to retirement plans by encouraging small employers to join together to take advantage of economies of scale to offer their workers a 401(k) or similar plan. Another part of the bill aims to continue lifetime income protections for savers who participate in plans undergoing changes.

“A key reform added by House Ways and Means Committee Chairman Kevin Brady (R-Texas) will make it easier for employers to offer annuities in their retirement plans. Annuities can guarantee lifetime income and can help employers offer a plan that resembles in certain ways a traditional pension that guarantees a paycheck for life to a retiree.

“As the Family Savings Act moves to the Senate, ACLI asks lawmakers to adopt an additional provision to ensure all workers receive an illustration of how their workplace retirement savings translates into monthly income. ACLI also will advocate for a provision to enhance automatic enrollment and contribution escalation features in plans. These additional steps will provide even more help to Americans preparing for retirement.

“Congress should take advantage of this once-in-a-generation opportunity to enhance America’s retirement system and pass comprehensive retirement security legislation this year.”