[Congressional Record Volume 164, Number 116 (Wednesday, July 11, 2018)]
[Senate]
[Pages S4917-S4918]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Ms. COLLINS (for herself and Mr. Warner):
  S. 3197. A bill to amend the Internal Revenue Code of 1986 to promote 
retirement savings on behalf of small business employees by making 
improvements to SIMPLE retirement accounts and easing the transition 
from a SIMPLE plan to a 401(k) plan, and for other purposes; to the 
Committee on Finance.
  Ms. COLLINS. Mr. President, Ensuring that more Americans are better 
prepared financially for retirement is one of my top priorities.
  That is why I rise today to introduce the SIMPLE Plan Modernization 
Act with my colleague from Virginia, Senator Mark Warner. Our 
legislation will provide greater flexibility and access to both 
employees and their employers seeking to utilize the popular SIMPLE 
plans as an option for saving for retirement.
  According to the non-partisan Center for Retirement Research, there 
is an estimated $7.7 trillion gap between the savings American 
households need to maintain their standard of living in retirement and 
what they actually have. A recent Gallup poll found that only 51 
percent of working Americans believe that they will have enough money 
to live comfortably in retirement. Though this is the highest 
percentage of confidence in nearly a decade, we must continue to work 
to ensure that even more Americans will have the resources they need to 
enjoy their ``golden years.''
  Another contributing factor is that employees of small businesses are 
much less likely to participate in employer-based retirement plans. 
According to a study by the PEW Charitable Trusts, roughly 30 million 
U.S. private-sector full-time workers continue to lack access to a 
work-based plan to save for retirement.
  SIMPLE retirement plans were established in 1996 to encourage small 
businesses to provide their employees with retirement plans that are 
less costly and easier to navigate. A business with 100 or fewer 
employees can create a SIMPLE retirement savings account so long as it 
does not offer another employer-sponsored retirement plan.
  The SIMPLE Plan Modernization Act would help to expand access to 
SIMPLE plans by increasing the contribution limit for most small 
businesses. This would achieve two important goals, Mr. President: 
first, it would encourage more small businesses to offer a retirement 
savings benefit to their employees; and second, it would allow 
employees of small businesses to save even more for retirement each 
year on a tax-deferred basis.
  This legislation is a win-win proposition for retirement security. 
There are many small employers that simply cannot afford a 401(k) plan. 
For them, this legislation would provide enhanced savings 
opportunities. At the same time, the legislation is carefully 
constructed to prevent employers with a 401(k) plan from dropping that 
plan to adopt a SIMPLE plan. And the legislation preserves strong 
incentives for small businesses that become more successful to move 
from a SIMPLE plan to a 401(k) plan. We believe our approach will 
encourage businesses and their employees to take steps to save for 
retirement, and eventually move towards a more substantial retirement 
package, like a 401(k) plan.
  In my home state of Maine, the vast majority of businesses are 
eligible to sign their employees up for SIMPLE Plans. Financial 
advisors from Presque Isle to Portland have shared their concerns that 
neither employees nor their employers are in a good position to save 
for retirement. We must give

[[Page S4918]]

small businesses and employees a better opportunity to save for 
retirement and this legislation will provide such an opportunity. I 
urge my colleagues to join Senator Warner and me in supporting the 
SIMPLE Plan Modernization Act. Thank you, Mr. President.

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