This bill creates the American Worker Retirement Plan, a new federal retirement savings program managed by the Treasury Department for employees and self-employed workers without access to employer-sponsored plans. Employers must automatically enroll eligible workers at a 3% contribution rate (with opt-out options), and the federal government provides a matching tax credit—contributing 100% of contributions up to 3% of income, 50% from 3-5%, and nothing above 5%, with credits phasing out for higher earners. Participants can invest in government securities, fixed-income funds, stock indexes, and lifecycle funds; withdraw funds at age 59½ or for financial hardship; or transfer money to other retirement plans, with funds managed by a Treasury-appointed Investment Board subject to strict fiduciary duties and oversight by the Department of Labor. The bill establishes comprehensive governance structures, operational safeguards, and enforcement mechanisms to protect participants' assets and ensure low-cost, prudent investment management.
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