AARP Washington is

championing a bill to require employers that do not offer retirement plans to

make an “automatic enrollment” Individual Retirement Account available to their

workers.

House Bill 2516, the

“Secure Choice Retirement Savings Program,” was pending in the House of

Representatives in mid-February.

AARP says the bill is

a necessary antidote to a retirement crisis that leaves employees of some small

businesses without a way to save for retirement.

According to AARP,

more than 1.1 million Washingtonians work for an employer that does not offer a

retirement savings plan, or 45 percent of private-sector employees. Small

businesses are less likely to offer plans, AARP said.

The bill, sponsored by

Rep. Davina Duerr, D-Bothell, would facilitate voluntary retirement savings by

workers by establishing an IRA savings program with automatic enrollment and

requiring employers that do not offer retirement plans to make it available to

their workers.

“Large numbers of

households in this state have no or inadequate retirement savings and many of

those households do not have access to any savings plan at work,” the bill

reads, adding that the problem will challenge state budgets.

“Washington state is

deeply concerned about the retirement prospects of its citizens and the strain

that large numbers of ill-prepared retirees may impose on taxpayer-financed

elderly assistance program for housing, food, medical care and other

necessities.”

AARP said 91 percent

of workers who don’t have access to a retirement plan say they would take

advantage of one if it were available.

“Washingtonians are

working as hard as ever, but many do not have a way to save for retirement out

of their regular paycheck,” said Cathy MacCaul, AARP’s advocacy director in

Washington, in a release.

The bill was pending

in the House Committee on Consumer Protection & Business.

A video of an executive committee hearing is posted at tvw.org/watch/?eventID=2020021106.