Proposal Would Increase Retirement Plan Access for Younger Workers
Senator Bill Cassidy (R-LA), and co-sponsor Tim Kaine (D-VA) have introduced the “Helping Young Americans Save for Retirement Act”. According to a press release, the legislation would lower the participation age of Employee Retirement Income Security Act of 1974 (ERISA)-covered defined contribution (DC) plans to 18 years old under certain circumstances, providing access to retirement savings plans for eligible workers in this age range who may not have access to their employers’ plans.
The proposal 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 pension. 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.