Regulatory and Legislative

Retirement Savings for Americans Act Reintroduced

Senators John Hickenlooper (D-CO) and Thom Tillis (R-NC), and Representatives Terri Sewell (D-AL) and Lloyd Smucker (R-PA) have re-introduced the Retirement Savings for Americans Act.

A press release from Sen. Hickenlooper explains that the bill would establish a new government program providing a portable, tax-advantaged retirement savings account for eligible workers and give federal matching contributions to low and middle-income workers.


The press release further explains the bill contains the following provisions:

  • Eligibility and Auto Enrollment: Full- and part-time workers who lack access to an employer-sponsored retirement plan would be eligible for an account, and they would be automatically enrolled at 3 percent of their income. They could choose to increase or decrease their withholding or opt out entirely at any time. Independent workers (including gig workers) would also be eligible.
  • Federal Contribution: Low- and moderate-income workers would be eligible for a 1 percent automatic contribution (as long as they remain employed) and up to a 4 percent matching contribution via a refundable federal tax credit. This would begin to phase out at median income.
  • Portability: Accounts would remain attached to workers throughout their lifetimes, and workers would be able to stop and start contributions at will.
  • Private Assets: The accounts would be the property of the worker and the assets could be passed down to future generations to help them build wealth and financial security.
  • Investment Options: Much like the current Thrift Savings Plan, participants would be given a menu of simple, low-fee investment options to choose from, including lifecycle funds tied to a worker’s estimated retirement date, or index funds made of stocks and bonds.”