House Proposal Would Require Employer Contribution Savings Plan

Representatives Scott Peters (D-CA) and Norma Torres (D-CA) have introduced H.R. 5887, the Saving for the Future Act. According to a fact sheet, the bill would require employers with more than 10 workers to provide employer contributions to a savings plan of at least 50 cents per hour worked. This minimum would rise to 60 cents after two years and be adjusted for wage growth. Businesses with fewer than 100 workers could make contributions into portable, worker owned UP Accounts maintained by the federal government. Workers would be automatically enrolled to contribute 4 percent of their own earnings which would automatically rise to as high as 10 percent, but may opt out or select a different contribution level.

The bill is patterned after the National Employment Savings Trust (NEST), a government-established program in the UK. Representative Peters previously introduced the bill in 2019. A companion bill was introduced at that time by Senators Chris Coons (D-DE) and Amy Klobuchar (D-MN).