Providing for Consideration of H.R. Consumers First Act; Providing for Consideration of H.R. Setting Every Community Up for Retirement Enhancement Act of Providing for Proceedings During the Period From May Through May and for Other Purposes
Floor Speech
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Mrs. TRAHAN. Madam Speaker, I rise to offer my strong support for the rule and for the Setting Every Community Up for Retirement Enhancement Act.
This is an important retirement savings measure that has the support of a wide range of stakeholders, from the United States Chamber of Commerce to the Girl Scouts. What a credit to the committee for taking up this important legislation for the people.
I want to highlight section 105, a provision that the committee included to offer a tax incentive to small businesses for setting up automatic enrollment for their employees' retirement plans.
Madam Speaker, while half of private-sector employees have access to a retirement plan through their employer, it is estimated that just 15 percent of small businesses offer a retirement plan. Yet small businesses employ approximately half of the Nation's private-sector workforce.
Ensuring that small business employees have retirement options just like those who work for larger companies will increase small businesses' competitiveness at a time when the job market is tightening, and it will position these employees for a secure retirement.
Establishing automatic enrollment in retirement plans is critical. Participation rates in defined contribution plans like a 401(k) are above 90 percent among new hires when automatic enrollment is the default. Moreover, 80 percent of participants increase their contributions over time. Alternatively, when employers do not offer automatic enrollment, new hire participation is below 50 percent.
Section 105 is based upon a bill that Mr. Kelly and I introduced, the Small Employer Retirement Savings Auto-Enrollment Credit Act. It would provide small businesses--those with up to 100 employees--a $500 tax credit to defray the start-up cost of offering automatic enrollment. The tax credit would also be available to small businesses that convert their existing employee retirement program from an opt-in to auto- enrollment.
I was pleased to work with the chairman and his staff as well as the gentleman from Pennsylvania on this issue. I urge adoption of the resolution and the SECURE Act.
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