Trump Calls for New Retirement Savings Program that Could Include an Employer Mandate

In his State of the Union speech on Feb. 24, President Trump called for an as yet undefined new retirement savings program for those whose employers do not offer an employer-sponsored retirement savings plan. He did not get into details, and Hill knowledge of his plan is extremely limited. However, speculation (some at least somewhat informed but some just guesses) is rampant.

Here is what we are hearing (keep in mind, not only are these details subject to change, some are conflicting).

First, many on the Hill believe that the proposal will require employes that do not offer a retirement savings plan to implement the program for any of their workers who qualify for it and choose to participate in it. This could involve collecting employee contributions and transmitting them to the plan itself. At this point this is pure speculation, but it is a widely-held belief.

Other speculative elements of the plan include:

• The program could be called "Trump Accounts for Adults" and would be limited to those with no more than moderate incomes (no dollar amounts even guessed at).
• The program would be built on increased Savers Credits
• The program would open the federal government's Thrift Savings Plan (TSP) to those eligible for it.
• The program would expand the new Trump Accounts for Children program
• The program would tweak the existing (but now shut down) MyRA program.
• Congress will have to enact legislation to establish the program
• The President will establish the program by Executive Order.

There is not a lot of clarity here, but there is clear interest in the idea on the Hill.

Prospects: We expect emerging details in the near term.

NAIFA Staff Contacts: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org