Thread by @kalamarides

During today's US Senate HELP hearing on #retirementsavings and #emergencysavings, we'll hear testimony from @AspenFSP’s @idarademacher, @WISERwomen’s Cindy Hounsell, @GROUPIRA’s Petros Koumantaros and @TIAA’s Doug Chittenden.

help.senate.gov/hearings/rise-…

The US House is also scheduled today to vote and pass on bipartisan HR 2954 - Securing a Strong Retirement Act of 2021 - also known at #SECURE2.0 - sponsored by Reps Neal (D-MA) and Brady (R-TX).
congress.gov/bill/117th-con…

#SECURE2.0 builds on the 2019 SECURE Act - which enabled (a) pooled employer plans #PEPs that enable smallbiz to pool their purchasing power for workers retirement and (b) lifetime income solutions.

#SECURE2.0 mandates automatic enrollment in new #retirement plans, promotes the Saver's Credit, raises the catch-up limit, expands #PEPS to non-profits through 403b plans and allows matching contributions for student loan payments.

Senator @PattyMurray (D-WA) opens the HELP hearing discussing the importance of #emergencysavings & #retirementsavings during COVID-19 pandemic.

“We need to help families put money away for a rainy day” says @PattyMurray

Sen @PattyMurray reviews many ideas included in #SECURE act and other #bipartisan proposals to expand #retirementsavings - including spousal protections and student loan debt.

Now @SenatorBurr (R-NC) “today we will examine how we can make further improvements to 401k plans. The system works great when you participate.” He advocates for Multiple Employer Plans.

I’ve advocated for #MEPs for years - having testified to HELP committee in Oct 2015. See more -> help.senate.gov/imo/media/doc/…

Petros Koumantaros of @GROUPIRA focuses on #EmergencySavings and expanding coverage to #RetirementPlans.

While Koumantaros advocates for penalty-free withdrawals from retirement plans for emergencies, I have a different point of view. Let’s instead create #emergencysavings accounts that complement #retirementsavings.

prosperitynow.org/blog/expanding…

Koumantaros advocates for electronic delivery of materials to reduce costs and increase accessibility and supports expanding part-time workers’ participation.

.@AspenFSP @idarademacher discusses the critical role that #retirementsaving plays in wealth creation and closing the #racialwealthdivide.

.@idarademacher reinforces @CFPB’s recent study on the importance of #emergencysavings.

consumerfinance.gov/data-research/…

Cindy Hounsell of @WISERwomen outlines the benefits of workplace-based #emergencysavings for working women.

The Strengthening Financial Security Through Short-Term Savings Accounts Act S.2601 cosponsored by Senators @CoryBooker (D-NJ) and Senator @ToddYoungIN (R-IN) would create workplace based #emergencysavings plans.

Douglas Chittenden of @TIAA outlines the benefits of using annuities to create #lifetimeincome and advocates for expanding default investment options to include guaranteed income.

Chittenden also advocates for expanding coverage to non-profits through 403b plans using #MEPs and #PEPs.

We start questions by discussing the importance of #emergencysavings as a prerequisite for financial security. @idarademacher reviews principles to reduce #liquidassetpoverty.

Questions now focus on reducing lost accounts and creating a Qualified Default Investment Alternatives for automatic rollover accounts.

Discussion now focuses on the benefits of #PEPS - reduced administration costs through purchasing scale, increased access and better institutional investments. @TIAA discusses need of non-profits to get these benefits.

.@TIAA advocates for a different definition of nexus for multiple employer plans.

.@SenatorBurr and @SenatorCasey (D-PA) ask about #gigeconomy. I’d propose expanding PEPs to include voluntary individual participation of gig workers and part-time workers. This would imitate Australia’s superannuation system.

I should note that the tone of this hearing is very #bipartisan. There seems to bebroad agreement on the issues and the set of solutions. Clearly building the case for #SECURE2.0.

Senator @TinaSmithMN (D-MN) raises the important issues of the #racialwealthdivide and specifically the challenges of spousal protections for #NativeAmerican women.

Now @SenJackyRosen (D-NV) advocates for expanding coverage and participation among #smallbiz workers.

Petros Koumantaros advocates for incentives to expand worksite financial planning and coverage.

Now @SenatorHick John Hickenlooper (D-CO) asks about the importance of #retirementsavings to create wealth for #LMI families.

.@prosperitynow and I agree that it’s critical to lift asset limits to help LMI families to save without penalty.

prosperitynow.org/blog/2020-annu…

Now @SenatorBraun (R-IN) using his time to advocate for the importance of workforce education using #529plans for certificates and other skill development.

There is now a discussion of defined benefit lump sum buyouts. The key is help participants to avoid spending a lump-sum that is meant to create lifetime income. This is a complex issue that the ERISA advisory council has written about here ->
dol.gov/sites/dolgov/f…

This US Senate HELP hearing has wrapped up. For my thinking and recommendations - please read my @prosperitynow blog below.

prosperitynow.org/blog/expanding…

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