Benefits of Work and Save:
- Choice. It’s up to each employee to decide if, and how much, he or she wants to contribute to an account. Plans offer a wide array of investment options for savers — such as equities and mutual funds.
- Easy to save. Employee contributions would be deducted automatically from each paycheck.
- Portability. The account follows employees if they switch jobs so they can continue to save.
- No ongoing cost or risk for the state. Work and Save plans are intended to be self-sustaining, and will be 100 percent participant funded after initial start-up costs. A Work and Save plan is not a public pension, and the funds cannot add to the state’s pension liability.
- Benefits businesses. Work and Save is an easy way for businesses to offer their employees a retirement fund and gain a competitive edge in the marketplace.
Seven states have already made progress towards advancing Work and Save plans this year – and giving their residents a way to retire with confidence.
Maryland: A week ago, Gov Martin O’Malley signed an executive order creating the Governor’s Task Force to Ensure Retirement Security for All Marylanders. This task force will look at how Maryland can improve retirement security for its residents.
“I understand that a lot of people across Maryland feel anxious about their retirement, and we are taking action to help,” O’Malley said.
Connecticut: In the last 12 minutes of the legislative session, Connecticut became the first state to self-fund a study on Work and Save legislation.
Minnesota: Following in Connecticut’s footsteps, Minnesota set money for a study aside as part of the Women’s Economic Security Act.
Utah: An interim study in the coming months will look at retirement security in Utah.
Washington: A study and work session on retirement saving and a Work and Save plan was just completed in Washington state.
Colorado: Legislation to conduct a study has passed the Colorado House this session.
Illinois: Work and Save legislation has passed the Senate and is under consideration in the House.
We’re continuing to fight to make Work and Save a reality in these states and more. Follow me on Twitter @RoamTheDomes for more news on advocacy across the country. And to stay up to date on our AARP advocacy in the states, sign up for the AARP Advocates e-newsletter or visit your state Web page.