Two members of Congress today lobbied their colleagues on behalf of a bill that would encourage small employers to enroll employees in SIMPLE IRA plans automatically.
Reps. Ron Kind, D-Wis., and Kenny Hulshof, R-Mo., appeared as witnesses at a hearing of the House Ways and Means Committee Select Revenue Measures Subcommittee to talk about H.R. 5160, the Small Businesses Add Value for Employees Act.
SIMPLE IRA plans are supposed to be a relatively simple retirement plan option for employers with 100 or fewer workers.
In addition to helping the employers sponsoring the plans add an automatic enrollment feature, H.R. 5160 would increase the amounts employers could contribute to the plans each year and increase the employers’ flexibility, Kind and Hulshof said.
“Very [few] modifications have been made to the SIMPLE IRA since it was first created,” Kind said. “On the one hand, this is a good thing, since we do not want to discourage small employers by constantly tinkering with the mechanics of the program, making it more costly to administer. On the other hand, after over 10 years of operation, I do think the SIMPLE IRA is ready for some modernization.”
Rep. Phil English, R-Pa., the highest ranking Republican on the subcommittee, said he is eager to learn more about SIMPLE IRA auto enrollment proposals.
“I believe this tool has the potential to fundamentally expand savings opportunities for millions of Americans and generate billions of dollars in new savings,” English said.