Des Moines, IA- Today, State Senator Nate Boulton introduced two bills in the Iowa Senate to expand access to retirement savings options for Iowans across the state. He and Treasurer Michael Fitzgerald held a press conference to explain the impact of the legislation and provide further details.
The fist bill, SF 2088, creates Retirement Savings Iowa, a program that would create a public fund, managed by the state, that would be offered to Iowa’s private sector workers through their employers. Businesses that do not already provide employees with a retirement savings option would be able to offer their employees the option of investing a percentage of their paycheck in a state-managed retirement account at an amount determined by the employee. The State Treasurer will be the trustee of this fund, and participants may opt out at any time.
“This plan is good for everyone involved,” Fitzgerald stated. “Retirement Savings Iowa allows private employees without employer-sponsored plans to save for retirement, while removing many of the complexities and costs small business owners face when setting up and maintaining plans.”
The second bill, SF 2087, instructs the Department of Workforce Development to look into a portable benefits program for nontraditional workers and independent contractors who are usually ineligible for health care and other employment-related benefits. The report will be submitted to the legislature by November 15, 2018.
Retirement Savings Iowa and a portable pension program would give thousands of Iowans the opportunity to save for their retirements, providing for a more financially stable senior population.
“Iowans who work hard to get ahead should be able to enjoy a secure retirement,” Boulton said. “By protecting IPERS, expanding access to retirement savings plans, and working to provide benefits for workers in our growing ‘gig’ economy, we can support working families and ensure they receive the benefits they deserve as they age.”
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