EXPANDING PRIVATE SECTOR RETIREMENT SECURITY

THE CHALLENGE

Americans are facing a looming retirement crisis. According to the Employee Benefit Research Institute, many Americans report that they have virtually no savings or investments, and the percentage who are confident about having enough money for retirement dropped to record lows between 2009 and 2013. Almost one-half of all working Americans (approximately 78 million people) work for employers that offer no retirement plan, and 85 percent of Americans are not on a path to achieving a secure retirement.

THE RESPONSE

On May 18, 2015, Washington[1] became the fourth state to enact a law to provide private sector workers with new options for retirement savings. These state efforts continue to gain significant momentum. Illinois[2] enacted its Secure Choice retirement savings plan in January 2015, joining Massachusetts[3] and California,[4] already working on implementing their own distinct programs. Utah[5] and Virginia[6] passed laws in March 2015, joining states, such as Connecticut,[7] studying plan design options. Several other states, including Oregon,[8] have issued a task force report and introduced legislation in 2015. Since 2012, at least 24 states have considered proposals to study or establish state-sponsored plans.

RESOLVED, that the AFT Trustee Council enthusiastically supports efforts by states and cities to provide access to pooled and professionally managed retirement accounts for private sector workers and businesses.