CWA: USA Retirement Funds Act is "Building Block" in Effort to Address Retirement Insecurity

Washington, D.C. -- The Communications Workers of America issued this statement on the introduction of the Universal, Secure and Adaptable (USA) Retirement Funds Act of 2014. 

CWA applauds the introduction of the Universal, Secure and Adaptable (USA) Retirement Funds Act of 2014 as an important first step in strengthening retirement security for Americans. The bill was introduced by Senator Tom Harkin (D-IA), who chairs the Health, Education, Labor and Pensions (HELP) Committee. 

The bill calls for U.S. workers not covered by an existing pension plan to be automatically enrolled in a new private pension system that would help them save up to $10,000 of their pay each year. Employers would not be required to make contributions but would send up a payroll deduction system. Workers would be enrolled at a 6% contribution rate, but may always “opt out” of the program. Currently, there are more than 61 million people without access to a workplace retirement plan and 14.5 million people who are self-employed. 

CWA commends Senator Harkin for his work to help broaden pension and retirement security coverage for the nation’s workforce.  Currently, fewer than half of all American workers have access to a retirement plan. By requiring that employers with 10 or more employees make the program available to workers, this legislation would help workers begin build retirement security. 

The legislation also includes several features of traditional pension plans that have proven to work very well for participants, including pooled and professionally managed investments and a monthly income stream in retirement. In fact, in these respects the program is similar to the Adjustable Pension Plan, an innovative retirement plan design that CWA recently has bargained with employers. It also would provide for portability. 

USA Retirement Funds will provide a building block in efforts to address the impending retirement security crisis in the United States.

Contact Candice Johnson or Kendra Chaikind, CWA Communications, 202-434-1168, cjohnson@cwa-union.org and kchaikind@cwa-union.org