Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
H.R. 2696 establishes the American Worker Retirement Fund, a new government-administered retirement savings program designed to help workers without employer-sponsored retirement plans build savings through automatic payroll contributions matched by a federal tax credit. The program automatically enrolls eligible workers at a 3% contribution rate (with opt-out options) and provides government matching contributions of 100% on contributions up to 3% of income and 50% on contributions between 3-5%, with funds managed by a five-member investment board that contracts with multiple asset managers using a Thrift Savings Plan-style investment approach. The legislation establishes strict fiduciary duties and oversight mechanisms for fund administrators and asset managers, including performance bond requirements, subpoena authority, and civil penalties up to 5% annually for violations, while offering participants flexible withdrawal options including annuities, installments, loans, and hardship distributions. The program includes financial literacy requirements and survivor protections, with penalties for employers who fail to enroll workers or deposit contributions, making it accessible to millions of American workers currently without retirement savings options.
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