Pension Participation and Uncovered Workers

Source: Nadia Karamcheva and Geoffrey Sanzenbacher, Center for Retirement Research at Boston College, Issue Brief, IB#10-13, August 2010

From the abstract:
In 2008, the Obama campaign proposed a “Plan to Strengthen Retirement Security.” This plan consisted of items ranging from increasing the threshold of the Social Security payroll tax to expanding the Saver’s Credit for families earning under $75,000. One of the more far-reaching proposals would require employers with 10 or more employees to automatically enroll their employees in Individual Retirement Accounts (IRAs). As a default, 3 percent of each worker’s earnings would be invested in a low-risk portfolio, but workers could choose to change the defaults or opt out of the plan. Employers would not be required to make a matching contribution, but employees who participate would be eligible for the expanded Saver’s Credit.

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