The federal government may be backing off from helping Americans without a retirement plan gain access to one, but not so the city of Seattle.
Tim Burgess, mayor of Seattle, signed legislation that establishes a Seattle Retirement Savings Plan, making the program the first city-facilitated retirement savings plan administered by an outside private party in the country.
According to Seattle Weekly’s report, the program will automatically enroll the estimated 200,000 Seattle workers without workplace retirement savings opportunities into the plan, which will be managed by a third party provider. Workers have the option to end their enrollment in the plan at any time.
Not only will workers be able to keep the plan throughout their careers, even when they change jobs, but participants will contribute a percentage of their pay into the plan and will choose how their funds are invested. The yet-to-be-formed Seattle Retirement Savings Plan Board will select the investment products to be offered.
The plan is expected to take effect in 2019 or 2020.