The House Education and Labor Committee unanimously approved the Retirement Improvement and Savings Enhancement (RISE) Act (H.R. 5891), which would enable employers to offer de minimis financial incentives, such as low-dollar gift cards, to boost employee participation in workplace retirement plans.
The RISE Act, which was unanimously passed by the House Education and Labor Committee, would, among other things:
- Reduce the requirement for part-time workers to participate in an employer's retirement savings plan from three years of service to two years;
- Enable employers to transfer former employees’ retirement accounts from a workplace retirement plan into an IRA if their balances are less than $7,000; and
- Remove certain employer notice requirements for employees who are not participating in workplace retirement plans, such as a 401(k).
The bipartisan bill was introduced by the Chair and Ranking Member of the House Education and Labor Committee. Committee Chair Bobby Scott (D-VA) said the bill “will make meaningful improvements to ensure that our retirement system better serves and supports our nation’s workers and retirees.” Ranking Member Virginia Foxx (R-NC) added “the RISE Act “will expand access to multiple employer plans, decrease the administrative cost of managing retirement accounts for small businesses, and reduce the costs of regulatory burdens on job creators, among other constructive provisions.”
Outlook: According to Rep. Scott, the RISE Act will be combined with the SECURE Act 2.0 before reaching the full House of Representatives for consideration, but it is unclear when that might happen and if the House has enough floor time to pass the legislation this year. However, both bills could move as part of some broader bill.
