Bill Overview
Title: RISE Act
Description: This bill makes various changes with respect to employer-sponsored retirement plans. Among other changes, the bill establishes the Retirement Savings Lost and Found database to allow individuals to locate the administrator of their plan. It also allows 403(b) plans (i.e., plans sponsored by certain charities, educational institutions, and nonprofit organizations) to participate in multiple employer plans and pooled employer plans.
Sponsors: Rep. Scott, Robert C. "Bobby" [D-VA-3]
Target Audience
Population: Individuals planning for retirement with employer-sponsored retirement plans
Estimated Size: 120000000
- The bill impacts employer-sponsored retirement plans.
- There is a focus on 403(b) plans, which are associated with charities, educational institutions, and nonprofits.
- It introduces the Retirement Savings Lost and Found database, which will affect individuals trying to locate their plan administrators.
- The legislation impacts individuals planning for retirement, as it involves retirement savings plans.
Reasoning
- We aim to include a diverse range of individuals who are affected by the policy to varying degrees, such as employees of educational institutions, nonprofits, and other organizations offering employer-sponsored retirement plans.
- Some participants should come from demographics that typically utilize 403(b) plans, as these individuals are central to the policy's impact and changes.
- Consideration also goes into including individuals who might benefit from the Retirement Savings Lost and Found database in terms of locating old retirement accounts.
- While the budget is significant, its impact will vary, with more noticeable effects for those near retirement age or individuals who frequently change jobs and lose track of their retirement savings.
- It is important to incorporate individuals at different life stages, from early career to approaching retirement, to capture variations in impact.
Simulated Interviews
Research Associate (Boston, MA)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 15/20
Statement of Opinion:
- The easy access to the Retirement Savings Lost and Found database would give me peace of mind knowing I can track my retirement savings as I progress in my career.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
High School Teacher (Denver, CO)
Age: 55 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- I'm looking forward to retirement in a few years, and simplifying my retirement plan management with this new policy would be a huge help.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Software Engineer (Seattle, WA)
Age: 43 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 18/20
Statement of Opinion:
- I don't think this policy affects me much since my retirement plan isn't a 403(b).
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Nonprofit Manager (Chicago, IL)
Age: 35 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 12/20
Statement of Opinion:
- Integrating 403(b) plans into multiple employer plans could lower my administrative burdens significantly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
University Professor (Atlanta, GA)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 14/20
Statement of Opinion:
- Having a centralized database for my retirement accounts is beneficial as I manage multiple retirement plans from previous jobs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 9 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Elementary School Teacher (Los Angeles, CA)
Age: 27 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 16/20
Statement of Opinion:
- Knowing where all my retirement funds are from the start will help me build a better savings plan for the future.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Engineer (Houston, TX)
Age: 32 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 20/20
Statement of Opinion:
- I'm in a career that doesn't use a 403(b), so this policy likely doesn't affect me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Retired (Phoenix, AZ)
Age: 62 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- If I could benefit from finding more funds through the Lost and Found database, it could make my retirement more comfortable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Nonprofit Executive (New York, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- While my organization doesn't use a 403(b), the lost funds recovery could help former employees.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
University Administrator (Miami, FL)
Age: 39 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- The simplification of managing and contributing to multiple plans will be a game changer for people like me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Cost Estimates
Year 1: $75000000 (Low: $50000000, High: $100000000)
Year 2: $75000000 (Low: $50000000, High: $100000000)
Year 3: $75000000 (Low: $50000000, High: $100000000)
Year 5: $75000000 (Low: $50000000, High: $100000000)
Year 10: $75000000 (Low: $50000000, High: $100000000)
Year 100: $75000000 (Low: $50000000, High: $100000000)
Key Considerations
- The impact of creating and maintaining the Retirement Savings Lost and Found database on administrative costs.
- The potential increase in retirement savings participation due to improved plan accessibility and oversight.
- Administrative burden and costs associated with implementing plan participation changes for 403(b) plans.