On Oct. 19, Senator John Hickenlooper reintroduced the Retirement Savings for Americans Act (RSAA), along with Senator Thom Tillis and Representatives Lloyd Smucker and Terri Sewall. If passed, the bipartisan bill would provide qualifying workers with tax-advantaged retirement savings accounts and allow the federal government to match contributions for low to middle-income workers.
RSAA would significantly impact the lives of gig workers or independent contractors, such as DoorDashers and Uber drivers. DoorDash operates in the Valley, and Uber operates out of the Aspen Airport.
Each of these companies have come out in support of the bill. Max Rettig, vice president of public policy at DoorDash, said, “With more Americans choosing new ways to work … we’re proud to support this bipartisan effort to enable more workers in the modern economy to access the kinds of benefits that have long been out of reach for all but full-time employees. This is an important step toward empowering workers, like Dashers, to choose independence and flexibility … while still having access to important benefits.”
According to proponents, it’s not just gig workers that would reap the benefits. All full and part-time workers who do not have access to a retirement plan through their employer would be eligible for an account. Applicants would automatically be enrolled at 3% of their income, with the option to increase or decrease their withholding, or leave the program altogether, at any time. This bill may also help small business owners who cannot afford to fund retirement savings plans for their employees.
An account would function like any other retirement savings account, enabling holders to build intergenerational wealth by passing their assets down. Holders would be able to choose from a list of investment options, which includes index funds made up of stocks and bonds, or lifecycle funds, tied to their prospective retirement date, according to a press release.
The RSAA bill was originally introduced in 2022. It remains almost entirely unchanged, but with “updated language to ensure low and middle-income Americans will be eligible for the tax credit,” continued the press release.
“The intent of this bill is to make sure that workers who don’t have access to adequate retirement savings accounts aren’t worried about retiring, or scared to stop working,” a spokesperson from Hickenlooper’s office told The Sopris Sun. “As things become more expensive, it’s harder for folks to retire. This bill would provide a sense of security to a lot of workers who are fearful right now, and that’s invaluable.”
Pushback includes a “slippery slope” narrative — that RSAA would give the government a way to control people’s retirement money, which, in turn, could lead to authority over other aspects of Americans’ lives.
Brian Graff, chief executive officer of the American Retirement Association, argued that the bill’s passing could upend the private market in favor of the federal government.
Alternatively, “The way our office looks at it, is that this bill is a way to fill the gaps. It’s for all the folks that fall in between, and don’t have access to private retirement plans,” Hickenlooper’s spokesperson added. “There are a ton of gig workers, freelancers or part-time folks who might work multiple jobs, and they need this plan. The intent is not a government takeover by any means. It’s intended to fill gaps where people are falling through the cracks.”
“Americans who work hard their whole lives deserve to retire with dignity,” said Hickenlooper. “This bill helps low-income workers enjoy a secure retirement and fulfill their American dream.”