I understand why people in the industry would have issues with the proposed legislation, known as “Retirement Savings for Americans Act.”
If passed the law would create a retirement savings program by the Federal government. . Full- and part-time workers who lack access to an employer-sponsored retirement plan would be eligible for an account, and they would be automatically enrolled at 3% of their income. They could choose to increase or decrease their withholding, or opt out entirely at any time. Independent workers (would also be eligible). Low- and moderate-income workers would be eligible for a 1% automatic contribution (as long as they remain employed) and up to a 4% matching contribution via a refundable federal tax credit.
I understand why the industry would be threatened by it, but I think any plan that increases retirement plan coverage for employees is a good thing. People will see this as an unfair competition where the Federal government is competing against private business in the 401(k) space, but I just think that any program, like State IRA programs, will increase the sponsorship of private 401(k) plans.