Washington, DC – On Friday, Reps. Scott Peters (CA-50) and Norma Torres (CA-35) introduced the Saving for the Future Act. This bill will address the nation’s retirement savings crisis and help Americans afford emergency expenses. Three-in-ten American workers lack access to workplace retirement plans, and nearly half don't participate in one. The Saving for the Future Act would help all Americans establish financial security and economic mobility.

“Today’s cost of living crisis means most Americans aren't able to put enough money away for retirement or protect their families from unexpected emergency costs,” said Congressman Scott Peters (CA-50).  “The Saving for the Future Act would help hardworking Americans build wealth through employer contribution plans. Now more than ever, retirement benefits should follow a worker as they move to new companies throughout their career. This legislation expands proven models of employer-provided savings and invests in portable benefits, so Americans can save for a more secure and prosperous future.” 

“Nearly a third of workers don’t have access to retirement plans through their job and are just one problem away from a financial crisis,” said Congresswoman Norma Torres (CA-35). “In the Inland Empire, too many families are struggling to afford groceries and pay rent. The Saving for the Future Act would change that by giving working families a real chance to build wealth, prepare for emergencies, and secure their future.”

“The Saving for the Future Act is an essential approach to reduce wealth disparity and improve the fortunes of working-wage Americans. This bill is bold, far-sighted, affordable, and pragmatic,” said Gabe Horwitz, Senior Vice President for the Economic Program at Third Way.

For the one-in-three Americans who have no retirement plan or pension, the Saving for the Future Act provides a path to long-term financial security by establishing a minimum employer contribution that easily transfers from job to job. 

Companies with ten or more employees would be required to contribute at least 50 cents per hour worked to an employer contribution savings plan, which could include existing plans, such as a 401(k). Employees at smaller companies would be able to save through federally provided “UP Accounts,” modeled after the popular Thrift Savings Plan for federal workers. UP Accounts would have low fees, could easily be transferred from job to job, and would be tailored to the employee’s age and savings needs.  

The bill text is available here.

A one-pager and FAQs on the bill are available here.

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