State Initiatives to Cover Uncovered Private Sector Workers

Source: Alicia H. Munnell, Anek Belbase and Geoffrey T. Sanzenbacher, Center for Retirement Research at Boston College, IB#16-4, March 2016

The brief’s key findings are:
– Half of private sector workers are not covered by an employer-sponsored retirement plan.
– The federal government has made no progress on closing this coverage gap, so the states are stepping into the breach:
– Four states have adopted a mandatory Auto-IRA program.
– Two other states are setting up voluntary marketplaces.
– Of these two approaches, the Auto-IRA would be much more effective.
– But a national Auto-IRA would be much better than 50 separate state plans.