EDITORIAL: Help workers help themselves
Retirement savings is virtually nonexistent for many working people. This is especially true for minorities. Roughly 67 percent of Hispanic workers, about 52 percent of African-Americans and 60.5 percent of Asian-Americans lacked access to an employer-provided retirement plan, according to the
This is where the
Here's how it would work: Employers that do not already offer retirement savings plans could opt in to the program, though they would not be required to do. Employees would automatically be opted in, but can opt out of the savings plans. That's tolerable, but it would be better if workers had to opt in, rather than out.
In any case, employers should make sure to explain to workers their rights to stop this automatic savings plan. Investments would be through a Roth IRA and would be portable, important for young workers who will likely have numerous jobs throughout their careers.
Some people cannot afford even small savings. Someone struggling to pay the bills may not feel she has a penny to spare. For those able to participate, the program offers an easy option. According to
More than 3.5 million private sector workers in
The board would design, administer and oversee a retirement savings plan for employees of private businesses within 24 months of the bill's enactment. The program would be supported through an administrative service fee on the investments made by enrollees capped at .75 percent of the total investments.
This bill must be implemented in the fiscal year 2019 executive budget. The fund could then receive collected payroll deductions for investment, giving more workers a chance to save in the work place.
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