The American Council of Life Insurers (ACLI) says it likes the idea of requiring most U.S. employers to enroll workers in retirement savings programs automatically.
The ACLI is endorsing the return of the Automatic Retirement Plan Act bill.
Rep. Richard Neal, D-Mass., who is now the chairman of the House Ways and Means Committee, introduced a version of the bill, H.R. 4523, in the last Congress.
The ACLI is expecting Neal to reintroduce the bill later this year.
The Old Version
H.R. 4523 would have required most for-profit employers, and some nonprofit employers, with more than 10 employees to set up automatic contribution retirement plans. Employees could choose to opt out of the plans.
A trust linked to an automatic contribution plan could offer a lifetime income portability option. A plan could provide portability through a “qualified plan distribution annuity contract.”
The bill would impose an excise tax an affected employers that failed to offer an automatic contribution plan, and it would offer a tax credit for small employers that did offer automatic contribution plans.