More laws, more plans, more complication, more spending – unnecessary!

The last thing we need is more complication added to our national retirement non-system and we don’t need more federal spending before we get our financial house in order. We need simplification. This legislation is expected to be reintroduced this year or next.

Strengthen the foundation of retirement income, strengthen Social Security for everyone. Don’t divert taxpayer money to personal retirement savings.

There are no gaps in the system, there are plenty of opportunities to save unrelated to employment even for low and moderate income. It takes individual responsibility. That is what’s missing.

Such legislation will discourage employer plans and lower the need for employer matching contributions given the taxpayer funded contribution and tax credits.

We need a Retirement Do-Over, not more retirement plans.

The ‘Retirement Savings for Americans Act’ would address significant and longstanding gaps in the U.S. retirement system that have severely limited participation from low- and moderate-income workers,” said EIG President and CEO John Lettieri. “If enacted, this

legislation would result in a healthier retirement system, a more financially secure workforce, and a stronger economy to the benefit of all Americans.”

Key features

The “Retirement Savings for Americans Act” contains the following provisions:

• Eligibility and Auto Enrollment: Full- and part-time workers who lack access to an employer-sponsored retirement plan would be eligible for an account, and they would be automatically enrolled at 3% of their income. They could choose to increase or decrease their withholding, or opt out entirely at any time. Independent workers (including gig workers) would also be eligible.
• Federal Contribution: Low- and moderate-income workers would be eligible for a 1% automatic contribution (as long as they remain employed) and up to a 4% matching contribution via a refundable federal tax credit. This would begin to phase out at median income.
• Portability: Accounts would remain attached to workers throughout their lifetimes, and workers would be able to stop and start contributions at will.
• Private Assets: The accounts would be the property of the worker and the assets could be passed down to future generations to help them build wealth and financial security.
• Investment Options: Much like the current Thrift Savings Plan, participants would be given a menu of simple, low-fee investment options to choose from, including lifecycle funds tied to a worker’s estimated retirement date, or index funds made of stocks and bonds.

401kSpecialist