WASHINGTON - Today, Republican Leader of the Health, Employment, Labor, and Pensions Subcommittee Rick Allen (R-GA) delivered the following statement, as prepared for delivery, at the Committee markup of H.R. 5891, the Retirement Improvement and Savings Enhancement (RISE) Act:
“The RISE Act is a chance for Republicans and Democrats to come together in support of legislation that will help Americans prepare for their future. As Ranking Member Foxx stated earlier, this committee has a long history of supporting bipartisan measures that address the financial needs of American workers and retirees.
“As recently as 2019, Congress enacted the SECURE Act, which opened the door for small businesses to participate in multiple employer plans. I am proud to be a part of this decades-long effort to modernize our nation’s retirement system so that more Americans have the opportunity to retire with peace of mind.
“H.R. 5891 is an important step forward in updating our nation’s retirement laws. By building on the SECURE Act, this legislation lowers the cost of administering retirement accounts for small businesses, including charities and non-profits, and allows businesses to offer their employees more incentives for participating in the plan.
“Everyone wants to retire knowing their finances are secure. With this goal in mind, millions of Americans diligently put money aside for retirement every paycheck. Yet with the rising cost of living and constraints imposed because of outdated laws and regulations, many Americans may not be adequately prepared for retirement.
“Private retirement plans are an invaluable asset to both workers and employers. They help employees save for their future and help employers with recruitment and retention. But in many cases, outdated laws and regulations make these plans extremely expensive to administer. In fact, many of the regulations governing these plans haven’t been updated in decades.
“Retirement savings have improved since Congress enacted the Employee Retirement Income Security Act, or ERISA, in 1974, the landmark retirement law that this Committee oversees. According to the Department of Labor, as of 2019 there were 733,700 private pension plans covering 141.9 million participants. Of which, 98.1 million are actively participating in and contributing to their plans.
“However, more work needs to be done to help Americans save for retirement. By 2030, Americans 65 and older will make up 20 percent of the population. Preparing for an entire generation to retire in less than ten years requires significantly modernizing our retirement system.
“Our economy looks very different than when ERISA was enacted in 1974, and our retirement laws should reflect this reality.
“Having owned a small business myself, I know how overly-restrictive federal regulations can make it difficult and costly to navigate federal law.
“Many small business owners believe it’s easier to stay away from federal programs that involve navigating bureaucracy, high costs, and regulatory burdens.
“If we want to get more employers to offer retirement plans, we must reduce the risk and increase incentives. We can do this by cutting red tape.
“Getting more Americans to save for retirement requires streamlining and simplifying the rules of the road, and that is what we were able to accomplish with this legislation that we’re considering here today.
“I would like to thank Chairman Scott and Chairman of our subcommittee DeSaulnier for their willingness to work across the aisle and negotiate on this important bill. The goal of our retirement policy should be to empower Americans to be self-sufficient and financially stable and make it easier for Americans to save for their retirement. I’m proud to co-introduce the RISE Act to do just that, and I look forward to working with members of this committee to get it across the finish line."
