Bill would allow auto-enrollment in retirement plans, encourage small businesses to pool resources to expand options for employees
Washington, D.C. - After meeting in February with Des Moines area small businesses such as Raygun, HoQ Restaurant, InDesign Architecture, and Court Ave. Brewing Co. to discuss the challenges associated with retirement security,Rep. Bruce Braley (IA-01) today introduced legislation that would increase options for employers and provide employees with additional opportunities for a safe and secure retirement.
"There's no silver bullet when it comes to a safe and secure retirement?but we can make things a little easier for businesses and employees that are trying to do the right thing and that's what this bill does," Braley said. "Small businesses are the job engine of Iowa and we owe it to them to find retirement solutions that benefit both their businesses and employees."
The Retirement Security Act would:
- Allow all small businesses to pool together into multiple employer plans in order to increase options and flexibility to invest in their employee's retirement.
- Allow employees to be 'opted-in' to retirement savings programs when starting jobs. Currently, a new employee must actively request to participate in a retirement program?something many employees don't do or aren't aware is available.
- Set a formula for employer's matching contributions that would lower the disparity between the amounts matched for high-income and low-income workers.
- Increases employee tax incentives to invest in employment retirement plans.
In February, Braley visited small business leaders in Des Moines in a discussion that focused on the challenges they face providing their workers with security into retirement.
A copy of the Retirement Security Act is available online HERE:
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