U.S. Senators Bill Cassidy and Tim Kaine have reintroduced the Helping Young Americans Save for Retirement Act, aimed at improving access to employer-sponsored retirement plans for Americans aged 18 to 20. The legislation seeks to remove barriers that discourage companies from offering these benefits to younger employees.
Senator Cassidy emphasized the importance of this initiative, stating, “Americans who don’t attend college and immediately enter the workforce should be given every chance to save for retirement.” He believes this legislation empowers workers by providing them more opportunities for a secure retirement.
Senator Kaine echoed this sentiment, highlighting the long-term benefits of early contributions: “Contributing to a retirement plan early on sets people up for financial security in the future. I’m proud to introduce this bipartisan bill that would ensure younger workers have access to their employer-sponsored retirement benefits when they are starting out in their careers.”
The bill proposes lowering the participation age of Employee Retirement Income Security Act (ERISA)-covered defined contribution plans to 18 years old under certain conditions. This change aims to provide eligible young workers access to savings plans currently unavailable through their employers. Plans would retain the ability to set a minimum age threshold up to 18 years old.
Additionally, the legislation addresses costs associated with covering younger workers by delaying ERISA provisions requiring mandatory audits if employees under 21 contribute to pensions. It also exempts employees aged 18-20 from certain testing related to retirement funds that could otherwise increase administrative costs.
The Helping Young Americans Save for Retirement Act has garnered support from several organizations, including BPC Action, Edward Jones, American Benefits Council, LPL, Insured Retirement Institute, National Rural Electric Cooperative Association, TIAA, and Transamerica.
Paul Richman of the Insured Retirement Institute commented on the bill's impact: “The Helping Young Americans Save for Retirement Act will expand the opportunity for more younger workers to start saving earlier for retirement by allowing them to participate in their employer-sponsored workplace plans. This measure will not only help younger workers get into the habit of contributing to their retirement savings but it will also provide additional years for their savings to grow.”
For further details on this legislative effort or other updates from HELP Republicans, resources are available on their website or Twitter handle @GOPHELP.
