The federal government should incentivize employers to make part-time and recently hired workers eligible to participate in their retirement plans, according to a new white paper.
The report, “Building Retirement Security through Defined Contribution Plans,” authored by Professors Jeffrey Brown and Scott Weisbenner of the University of Illlinois at Urbana-Champaign, was written under the auspices of the American Council of Life Insurers (ACLI). The paper supports the view that private defined contribution (DC) plans can provide a secure retirement for current and future generations of workers.
“[To] fully reach its potential, policymakers, plan sponsors, the retirement industry, and individuals need to work together to extend retirement saving and income opportunities to more households,” the report states. “Furthermore, we need to ‘change the conversation’ to be more focused on retirement outcomes.
“Rather than focusing defined contribution plans as a tool for wealth accumulation, we need to move public policy, plan design and communication toward treating defined contribution plans as a path to guaranteed income.”