S.1526 - Retirement Savings for Americans Act of 2025 (119th Congress)
Summary
The Retirement Savings for Americans Act of 2025 aims to establish the American Worker Retirement Plan, a retirement savings program for American workers, particularly those without existing retirement plans. It introduces the American Worker Retirement Fund, managed by the American Worker Retirement Investment Board, and provides a government match tax credit to incentivize contributions. The Act includes provisions for eligibility, enrollment, contributions, distributions, and investment management, along with spousal protections and survivor rights.
Expected Effects
The Act is likely to increase retirement savings among workers who currently lack access to employer-sponsored plans. It could also shift some investment management responsibilities to the government, affecting the financial industry. It will also create a new government bureaucracy to manage the fund.
Potential Benefits
- Provides a retirement savings option for workers without existing plans.
- Offers a government match tax credit to encourage participation.
- Establishes a framework for investment and management of retirement funds.
- Includes spousal protections and survivor rights.
- Could improve the financial security of working Americans in retirement.
Potential Disadvantages
- Creates a new government bureaucracy and associated administrative costs.
- Potential for investment mismanagement or political interference.
- Penalties for employers who fail to enroll eligible workers.
- The auto-enrollment feature may be seen as intrusive by some individuals.
- The effectiveness of the plan depends on participation rates and investment performance.
Constitutional Alignment
The Act appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to tax and spend for the general welfare, and this act establishes a retirement savings program. The creation of the American Worker Retirement Investment Board falls under the Necessary and Proper Clause (Article I, Section 8), allowing Congress to enact laws needed to execute its powers.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).