Four senators introduced a package of bipartisan legislation Tuesday intended to boost Americans’ retirement savings and help small businesses set up retirement plans.
The four bills — which contain policies consistent with recommendations from the Bipartisan Policy Center’s Commission on Retirement Security and Personal Savings — were introduced by Sens Tom Cotton, R-Ark., Heidi Heitkamp, D-N.D., Cory Booker, D-N.J., and Todd Young, R-Ind.
The senators said in a joint statement that the package of bills would “make needed reforms to improve retirement security for individuals and families, especially as the costs of health care, education, homeownership and other expenses have continued to rise.”
The bills would:
- Help workers set up short-term savings accounts to help with financial emergencies;
- Give small employers more flexibility when setting up 401(k)s for their employees;
- Allow filers to save a portion of their tax refund for “rainy day” or long-term savings; and
- Make it easier for savers to auto-enroll into long-term savings plans and more quickly escalate their savings.
The senators note that more than one-third of full-time employees do not have access to a workplace retirement plan.