Evans votes to advance bills on retirement security, re-employment services
Congressman Dwight Evans (PA-03) today voted to advance two bills that would help many workers: the SECURE Act, a bill to bring retirement security to more small business employees, and the BRIDGE for Workers Act, a bill to help unemployed people get re-employment services.
Evans serves on the House Ways and Means Committee, which oversees taxes, trade, Social Security and Medicare. The committee voted out both bills today.
“Retirement security for employees of small businesses is vital for those 99.6 percent of Pennsylvania employers to compete for and retain quality workers,” said Evans, who also serves as vice chair of the House Small Business Committee.
“In Pennsylvania, we have nearly 1 million small businesses, employing 2.5 million workers, accounting for 46.7 percent of the workforce for the entire state. For small businesses to remain competitive, and to continue to be the economic and innovative drivers they are, they must be able to offer substantial benefits to their employees, and the SECURE Act would provide several improvements on that front.”
The SECURE Act would:
- Make it easier for small businesses to sponsor retirement plans through multiple employer plans. These provide an opportunity for small employers to band together to obtain more favorable pension investment results and more efficient and less expensive management services. The SECURE Act would make multiple employer plans more attractive by eliminating outdated barriers to using these plans.
- Allow long-term, part-time workers to participate in their employers’ 401(k) plans. Women are more likely to work part-time than men, so this provision is especially important for women, Evans said.
- Create a new tax credit of up to $500 per year to employers to defray startup costs for new section 401(k) plans and SIMPLE IRA plans that include automatic enrollment. The credit would be in addition to the plan start-up credit allowed under present law and would be available for three years. The credit would also be available to employers that convert an existing plan to an automatic enrollment design.
- Make it more affordable for small businesses to set up retirement plans. The bill would enhance the small employer start-up credit. Current law offers a small business that adopts a new qualified retirement plan a tax credit for up to three years of generally $500. The SECURE Act would increase the credit amount.
Evans also voted to advance the BRIDGE for Workers Act, a bill to help unemployed people get re-employment services. It would ensure that states would be able to use reemployment service grants to serve all workers receiving earned unemployment benefits who need them.
“The BRIDGE for Workers Act would makes a simple but very important change to the law, allowing states to tailor their programs to help any recipient of unemployment benefits get back to work faster, rather than limiting re-employment supports to those who are expected to remain unemployed until their benefits run out,” Evans said.
Media Contact: Ben Turner, Ben.Turner@mail.house.gov