According to a Reuters article, the U.S. Chamber of Commerce and AARP recently met to host a seminar on retirement policy. Both parties are concerned about plan participation, plan access, and participant savings rates. Though these two parties don’t always agree on the form new policy should take, they do agree that change is needed. Some of the proposed changes for greater American retirement security are:
- Making auto enrollment and auto escalation mandatory for all plans
- Automatic payroll deductions to fund IRAs for employees of small businesses without another type of retirement savings plan
- Eliminate the ceiling on employer contributions to encourage higher contribution rates
- Expand the saver’s tax credit to increase participation in savings programs such as IRAs by expanding the income ceiling to benefit those who actually owe taxes
- Reduce regulatory restrictions on multi-employer plans so that more business might offer retirement plans through such a system because plan costs are reduced
How would any of these proposed changes affect your retirement plan?