Emergency Savings Enhancement Act Clears Committee

The Emergency Savings Enhancement Act, introduced last year by Senators Cory Booker (D-NJ) and Todd Young (R-IN), and amended by Senator Bill Cassidy ahead of a hearing, cleared the Senate HELP Committee by a vote of 19-3. The bill would modify pension-linked emergency savings accounts (PLESAs) in the following ways.

• Increase the maximum contribution limit from $2,500 to $5,000 to allow for greater emergency savings.

• Expand eligibility to include all employees who otherwise meet a retirement plan's general requirements, eliminating the administrative burden of continuously monitoring eligibility requirements.

Senator Cassidy's amendment would also appropriate additional funds in support of the Employee Ownership Initiative grant program originally created under SECURE 2.0.