Senator Hassan Discusses Bipartisan Efforts to Expand Access to Retirement Plans
WASHINGTON – Senator Maggie Hassan (D-NH) today discussed bipartisan ways to expand access to retirement plans for workers at a Senate Health, Education, Labor, and Pensions Committee hearing. The hearing was focused on addressing the retirement coverage and savings gap for Americans who do not have access to retirement savings options.
To watch Senator Hassan’s hearing questions, click here.
First, Senator Hassan highlighted a bipartisan bill that she is working on to improve the tax cuts for small businesses to help them fully cover the administrative costs of starting a retirement plan for their employees. Senator Hassan asked Eric Stevenson, President of Nationwide Retirement Solutions with Nationwide Mutual Insurance Company, “How can expanding retirement-related tax incentives for small businesses help increase access to retirement security for their workers, and how can Congress continue to support small businesses in their efforts to provide retirement plans?”
Mr. Stevenson also affirmed the importance of tax credits to small businesses and added that, as a former small business owner, he recognizes the importance of making it simple and straightforward for small business owners to set up a 401(k) plan for their employees.
Next, Senator Hassan focused on additional ways that Congress can help increase access to retirement plans. Senator Hassan has helped pass into law two bipartisan packages – the original SECURE Act and the SECURE 2.0 Act – to increase access to retirement savings options. Senator Hassan asked Mr. Stevenson, “How can Congress continue to build on this bipartisan momentum to increase access to retirement options?”
“SECURE Act 1.0 and 2.0 … [are] huge in terms of momentum and what they have done to create more access,” said Mr. Stevenson. “What we need to do now, and hold us accountable in terms of on this side of the table, is we’ve got to make sure that people are taking advantage of those benefits that you’ve already provided.”
Lastly, Senator Hassan spoke about the experiences mothers have saving for retirement with Sara Schambers, a UAW member. Senator Hassan highlighted a Department of Labor report that revealed that mothers lose an average of nearly $240,000 in income over their lifetime due to caregiving for their children, which in turn reduces mothers’ retirement savings by nearly $60,000. Senator Hassan asked Ms. Schambers, “How has your experience been trying to both care for your kids and save for retirement?”
“When the cost of living goes up, so does babysitting, so does daycare, so does everything else in this world,” said Ms. Schambers. “When school’s out, or daycare’s out, you have to take time off work in order to stay home with your children. So any of the 401(k) that I’m putting into, whether I’m off for a day or six weeks with my children, I’m not putting into my 401(k) daily. On top of that, it’s maxed at 40 hours. So, if I work 60 hours…the company only matches up to 40 hours of what I work. If I don’t work that 40 hours, I’m already behind.”
The hearing is part of Senator Hassan’s efforts to help strengthen Americans’ retirement security. Senator Hassan is currently working on a bipartisan bill to improve the existing retirement plan startup tax credit. In 2019, several provisions that Senator Hassan introduced were passed into law as part of the bipartisan Setting Every Community Up for Retirement Enhancement (SECURE) Act, which helped small businesses offer retirement programs to their employees. In 2022, Senator Hassan helped pass into law the bipartisan Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act, which expanded efforts to help more Americans save for retirement. Provisions Senator Hassan helped secure included measures to enable more businesses to join multiple employer plans (MEPs), expand tax cuts to small businesses who provide retirement benefits to their employees, increase retirement plan flexibility for public safety officers, and improve access for military families.
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