To establish the American Worker Retirement Plan, improve the financial security of working Americans by facilitating the accumulation of wealth, and for other purposes.
About This Bill
Committee
Latest Action · October 19, 2023
Read twice and referred to the Committee on Finance.
# Summary of S. 3102: Retirement Savings for Americans Act of 2023
This bill establishes the American Worker Retirement Plan, a new federal retirement savings account system designed to help workers without access to employer-sponsored plans build retirement savings. The program creates a centralized American Worker Retirement Fund managed by a newly established Investment Board, allowing eligible workers to contribute up to their full compensation annually with automatic enrollment at a default 3 percent contribution rate.
The bill targets "qualifying workers"—employees of businesses without retirement plans and self-employed individuals—who can elect to opt out of participation. Employers are required to enroll eligible workers within one year of the fund's establishment. The program offers investment options including government securities funds, stock index funds, and target-date funds managed by professional asset managers selected by the board.
A key feature is the Government Match Tax Credit, which provides federal matching contributions of 1 percent of gross income plus additional matching on employee contributions up to 5 percent of income, phased out for higher earners. Matching funds are deposited directly into participants' accounts but must remain invested for at least six months or the government match is forfeited. The bill ensures these retirement savings do not count against federal public assistance eligibility and includes spousal protections and loan provisions similar to the federal Thrift Savings Plan.
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