The Setting Every CommunityUp for Retirement Enhancement Act has been attached to acomprehensive spending bill that the House of Representatives isexpected to vote on, and pass.

SECURE is actually part of a tax extender bill thatappropriations negotiators comingled with the spending package.

The version of SECURE that lawmakers will vote on appears to beidentical to the version that passed out of the House in May by anear unanimous vote, according to several preliminary retirementindustry analyses.

The retirement bill is unquestionably substantial. Its leadprovision relaxes regulations on Open Multiple Employer Plans.

If the spending package becomes law, as is expected, retirementindustry service providers would be allowed to sponsor Open MEPs,allowing non-affiliated businesses to pool workers under onedefined contribution plan, and shifting nearly all of employers'fiduciary obligations to the MEP sponsors.

SECURE creates new and arguably robust tax incentives for smallbusinesses to sponsor retirement plans. It also uses the tax codeas a carrot to existing sponsors of retirement plans to deployautomatic enrollment.

A long-awaited annuity selection safe harbor for sponsors ofretirement plans is championed by insurance providers, and sponsorsof plans that want to infuse guaranteed income products intoretirement plans.

Other provisions impact IRA investors: the required minimumdistribution age is extended, and age cap on contributions totraditional IRAs is removed.

But whether or not the expansiveness of SECURE willrevolutionize the retirement industry in the way that target datefunds did when they were made a qualified default investmentalternative with passage of the Pension Protection Act in 2006remains to be seen.

Nevertheless, service providers are excited, seeminglyuniversally. In fact, criticism for SECURE has been at themargins.

Where supporters of the policy do differ is on the extent towhich it will close the retirement plan access gap in theworkplace, and the degree to which employers that don't now sponsorretirement plans will be incentivized to do so going forward.

And more work may need to be done to assure SECURE can move theneedle in the right direction for the country's retirementsecurity.

For instance, with the Open MEP provision, questions will remainas to whether or not a service provider that also manages money canserve as a sponsor of a pooled plan under SECURE.

"For a recordkeeper that also offers investment products, thereis a question as to whether it could sponsor a MEP," said PhilWaldeck, CEO, Workplace Solutions Group, Prudential Financial, inan interview earlier this year. "Players like us would need toevaluate the legislative landscape that passes before entering themarket."

If plan providers were to enter the Open MEP market, they wouldneed either additional legislation, or clean regulatory guidancefrom the Labor Department, said Waldeck.

According to analysis from the Joint Committee on Taxation,SECURE would add $428 million to the federal budget over 10years.

If the bill becomes law, BenefitsPRO will be seeking input fromall retirement stakeholders as to the potential market implicationsin the coming weeks and months. For the time being, here are a fewreactions ahead of the House floor vote.

Edmund F. Murphy III, Empower Retirement President &CEO

Congress can do a greatservice to American retirement savers by voting for the SECURE Act.This bill has the potential to make it easier for small businessesto set up retirement plans – something they've told us theyfavor.

Many of the provisions in SECURE were due to become effective assoon as January 1, 2020.  If the bill passes in lateDecember, Empower and others in the industry will work withDepartment of Labor and the Internal Revenue Service to obtainenforcement relief and allow for an orderly implementation.

SECURE includes a provision requiring plans to provideparticipants with an annual lifetime income disclosure convertingtheir account balance into an income stream at retirement.

At Empower we are strong advocates of these types ofprojections. However, the SECURE provision does not take advantageof the latest technologies in arriving at the projection. Aone-size-fits-all model will not work for all retirementsavers.

This provision has a delayed effective date – 12 months afterDOL issues guidance.  We look forward to working withLabor to develop guidance.

Joshua Lichtenstein, Partner at Ropes & Gray

If the SECURE Act ultimatelybecomes law, it will have a major impact on 401(k) planparticipants, plan sponsors and the financial institutions thatmaintain those plans.  One of the most significant changeswould be the creation of true open multiple employer plans, whichwould allow employers to outsource almost all plan related tasks tothe sponsoring financial institution.

Ultimately, this may even lead to more variety in 401(k)investment choice as MEP sponsors could leverage their investmentexpertise to offer exposure to investments such as private equityor real estate, which would align with potential reforms the SEC iscurrently considering to open private investments to Main Streetinvestors.

Dan Houston, Principal Financial Group CEO

This is a major step forwardin helping Americans achieve financial security in retirement. Onceapproved, this legislation will help more small and medium-sizedbusiness owners to cover their employees with retirement savingsplans.

It also opens up additional pathways to retirement savings byallowing the incorporation of guaranteed income solutions within anemployer's 401(k) plan.

As Americans continue to live longer, they may spend as manyyears in retirement as they did in the workforce. It is critical weemphasize and support lifetime income solutions that help people toprotect and live off their retirement savings responsibly.

Graham Cox, Executive Vice President & Head ofMetLife's Retirement & Income Solutions

This legislation removes thelong-standing regulatory barriers that prevent companies fromincluding lifetime-income options in their employees' retirementplans.

Through the requirement that lifetime income estimates beincluded on annual defined contribution (DC) plan benefitstatements, employees will gain a better understanding of how theirsavings translate into retirement income. The safe harborprovision, provided under the SECURE Act, increases workers' accessto solutions that will protect against the risk of outliving theirsavings. Both of these provisions provide valuable tools that willstrengthen retirement security for millions of Americans.

Larry Mandelker, Venable LLP Tax & Wealth PlanningPartner

With regards to IRA planning,one item of note is that people who have already engaged in estateplanning will need to review such planning to make sure it stillmeets their intentions given the rule changes. Otherwise,beneficiaries may receive lump sum payments which they were neverintended to receive. –under SECURE, the stretch IRA iseliminated, a provision that pays for a substantial cost of thebill

Barbara Novick, vice chairman, BlackRock

Retirement security is adefining issue for Americans and we support initiatives that expandaccess to retirement plans, increase participation in those plansand help individuals achieve better retirement outcomes. The SECUREAct is our greatest opportunity in over a decade to improveretirement security for millions of Americans.

Enactment of the SECURE Act opens the door to greater retirementincome security.

Susan Neely, President andCEO, American Council of Life Insurers

SECURE would mark a significant step toward modernizingAmerica's retirement system for workers.

The SECURE Act makes important changes that will go a long waytoward addressing the nation's looming retirement crisis. Oneprovision alone will get more than 700,000 small business employeesnationwide to start saving for retirement.

Phil Waldeck, CEO, WorkplaceSolutions Group, Prudential Financial

The SECURE Act is the most significant legislation aimed atbolstering America's retirement system in more than a decade.

James Klein, President,American Benefits Council

The bipartisan deal struck by congressional leaders is a victoryfor millions of Americans who receive health and financial securitythrough employer-sponsored benefit plans.