EAB Healthworks, with its extensive background in retirement plans, has been actively involved in the establishment of Secure Choice, a state sponsored retirement plan program for private sector employees. Currently, more than 55 million private sector employees have no access to a retirement savings plan at the workplace and neglect to take advantage of retirement plans available to all working individuals. As a result of this retirement savings gap and with it, an increased potential liability on public assistance programs, many state governments are exploring the possibility of creating a state sponsored retirement program for employers to offer employees. Given that studies have indicated that employees are more likely to save at the workplace, it is likely that more state sponsored programs will become part of many employers’ benefit programs.
This savings vehicle, Secure Choice, has already been enacted by ten states, with others in various stages of the legislative process. Most Secure Choice plans are in the form of auto-IRAs, funded solely with employee contributions and rollovers. Some states, however, have established Secure Choice Multiple Employer Plans (MEPs) or retirement plan marketplaces. Oregon and Illinois have rolled out their auto-IRA program, with California’s auto-IRA program not far behind.
EAB Healthworks has been identified as a consulting resource to AKF Consulting, to add individual retirement plan expertise to states in the development and implementation of their Secure Choice plans. We expect to continue our involvement in the Secure Choice initiative.