Wyden, Senate Democrats Introduce Bill to Help Working Families Save for Retirement

WASHINGTON – Senate Finance Committee Ranking Member Ron Wyden, D-Ore., and seven Democratic colleagues today introduced legislation to help more working and middle-class families save for retirement.

The bill was cosponsored by Senators Michael Bennet, D-Colo., Sherrod Brown, D-Ohio, Bob Casey, D-Pa., Catherine Cortez Masto, D-Nev., Dick Durbin, D-Ill., Amy Klobuchar, D-Minn., and Patty Murray, D-Wash.

According to the National Institute on Retirement Security, more than 100 million working-age Americans do not have coverage through a pension plan or own any retirement assets, whether in a 401(k) type plan or an IRA.

Wyden’s bill, the Encouraging Americans to Save Act, enhances retirement savings incentives by restructuring the existing, nonrefundable saver’s credit into a refundable, government matching contribution of up to $1,000 a year for middle and moderate income workers who save through 401(k) type plans or IRAs. The legislation also includes a COVID-19 recovery bonus credit that provides up to $5,000 in additional government matching contributions for the first $10,000 saved during a five year period beginning in 2022.

“Low- and middle-income workers, who are far less likely to have adequate retirement savings, have been hit by an economic wrecking ball. Many have been forced to draw down meager savings just to pay rent and buy groceries,” Wyden said. “Beyond providing relief over the short term, the federal government must do more to help families get back on their feet and save for the future. My bill, which is just one piece of the puzzle, would help working families recover from this crisis and achieve a secure retirement.” 

Wyden’s legislation would also enhance the saver’s credit by making the full 50% credit rate available to couples earning up to $65,000 per year ($32,500 for single taxpayers) and would require the credit be directly contributed into the saver’s retirement plan or IRA. 

A copy of the bill text is available here.

A web version of this bill is here.