A bipartisan bill that would provide more Americans ages 18 to 20 with access to employer-sponsored retirement plans was introduced in the House.
Rep. Brittany Pettersen, D-Colo., and Rep. Tim Walberg, R-Mich., introduced the Helping Young Americans Save for Retirement Act.
The bill would lower the age for employees to participate in ERISA-covered defined contribution plans to 18 from 21 and reduce regulatory burdens that price out employers from offering these retirement plans to workers under 21, according to a news release.
“We have to make sure our financial regulations keep up with reality and give all employees an opportunity to build a stronger financial foundation from the start,” Pettersen said in the news release.
Text for the bill was not immediately available, but a companion bill with the same name was introduced in November in the Senate.
The Senate bill would remove provisions that otherwise make covering younger workers expensive. Specifically, it would delay ERISA provisions that require businesses to undergo mandatory audits if they allow employees under the age of 21 to start contributing to their retirement account. The legislation would also exempt 18- to 20-year-old employees from testing related to retirement funds that would otherwise increase the cost of administering retirement plans for these employees.
"Empowering young Americans to start saving early not only fosters financial independence but also strengthens retirement security,” Walberg said in the news release.
