It is estimated that half of American workers will retire with insufficient savings to maintain their preretirement standards of living. It is also estimated that half of employees have no opportunity to save for retirement through their employment. Proposals have been introduced at the federal and state levels to increase the amount of Americans' savings by changing the default from an opt-in system to an opt-out system, through which employees who are unable to save through an employer-provided plan would be automatically enrolled in Individual Retirement Accounts.
Those proposing the plans envision the Auto IRA to be easy to administer and inexpensive, with little actual burden on employers. APA aims to ensure the government understands the employers' perspective on the actual administrative burden, and the subcommittee works toward making any burden as minor as possible while helping the government succeed in this potentially important initiative.
If you would like to participate in this subcommittee, please contact William Dunn, CPP, Manager of Government Relations, via email at wdunn@americanpayroll.org or by calling him at the APA Washington, D.C., office at 202-232-6889.
