Supporters and unions push Secure Choice retirement bills as simple, low‑cost way to expand coverage
Loading...
Summary
AARP, SEIU, business advocates and retirement policy groups urged passage of bills to create a state‑administered Secure Choice automatic IRA program for workers whose employers do not offer retirement plans, citing evidence from other states that such programs increase participation.
AARP Massachusetts, SEIU Local 509 and national retirement policy groups told the Joint Committee on Financial Services that House 11‑43 and Senate 7‑22 (and related proposals such as H12‑26) would expand retirement coverage for an estimated 1.2 million Massachusetts private‑sector workers who currently lack an employer‑based plan.
Jen Benson of AARP said about 43% of private‑sector employees in the Commonwealth lack access to a workplace retirement plan and described Secure Choice as an individual retirement account program that "would automatically enroll workers who don't have access to an employer based retirement benefit system such as a pension or a 401(k)."
Speakers from SEIU Local 509 urged adoption of H12‑26 to allow a multi‑employer Secure Choice plan and said the program is important for lower‑paid workers who cannot otherwise save. Nathan Glassy of the American Retirement Association and John Scott of Pew summarized national evidence: 17 states have adopted similar programs, more than a million workers in operating states have saved over $2 billion, and automatic enrollment produces high participation rates across income and racial groups.
Business and retirement‑industry witnesses said the program can be structured to be low‑burden for employers and to complement private providers. Proponents also raised an administrative point: federal Savers Match funds create urgency for states to implement Secure Choice by 2027 to ensure eligible workers receive the federal matching contribution.
The committee did not take a vote at the hearing.
