Bill Overview
Title: Portable Benefits for Independent Workers Pilot Program Act
Description: This bill requires the Department of Labor to award grants for FY2022, on a competitive basis, to states, local governments, or nonprofit organizations to support broad innovation and experimentation with respect to portable benefits. Portable benefits are work-related benefits that are provided to workers who are not traditional full-time employees in a manner that allows the worker to maintain the benefits upon changing jobs. The grants must be used for (1) the evaluation, or improvement to the design or implementation, of existing models or approaches for providing portable benefits; or (2) the design, implementation, and evaluation of new models or approaches for providing such benefits. The grants may not be used for a model or approach that provides only retirement-related benefits. The Government Accountability Office must evaluate and report to Congress on the outcome of the grants awarded pursuant to this bill.
Sponsors: Rep. DelBene, Suzan K. [D-WA-1]
Target Audience
Population: Independent workers and gig economy workers who seek portable benefits
Estimated Size: 59000000
- The bill is focused on innovation and experimentation with portable benefits for independent workers instead of traditional full-time employees.
- Independent workers, such as freelancers, gig economy workers, consultants, and contract workers, often lack access to job-based benefits like health insurance, retirement plans, paid leave, etc.
- In the United States, it is estimated that around 36% of the workforce is involved in some form of gig or independent work.
- Globally, the trend towards gig and independent work is increasing, with millions of workers involved in similar arrangements.
Reasoning
- This policy mainly affects independent workers who do not have access to traditional employee benefits.
- The vast number of independent workers in the US, approximately 59 million, suggests a large portion could be impacted in some way.
- The budgetary constraint implies that not all independent workers will receive benefits directly, but the program can promote innovation that has cascading effects beyond immediate recipients.
- Simulations must include both direct and indirect impacts of the policy, considering how the creation of portable benefits models could improve worker wellbeing long-term.
Simulated Interviews
Graphic Designer (Austin, TX)
Age: 32 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- I'm excited about the possibility of portable benefits because I often miss having health insurance and retirement options.
- I wish this had happened sooner as it's tough to save for retirement without employer support.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 4 |
Software Developer (San Francisco, CA)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 16/20
Statement of Opinion:
- Portable benefits could be a game changer, providing much-needed stability in my career.
- I'm cautious about how well it will be implemented, but it's a step in the right direction.
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 | 7 | 6 |
Consultant (Miami, FL)
Age: 60 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- It's reassuring to see actions being taken to support older independent workers like myself.
- I'm hopeful for easier access to benefits that I can carry with me as I plan for retirement.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 5 |
Rideshare Driver (New York, NY)
Age: 25 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- Portable benefits could help alleviate some financial stress from unexpected health issues.
- It feels like a step toward acknowledging gig workers' needs beyond just wages.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 3 |
Freelance Writer (Seattle, WA)
Age: 38 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 12/20
Statement of Opinion:
- I appreciate the concept, as it could help me manage benefits more flexibly as I alternate jobs frequently.
- However, I worry about how the costs will be managed among freelancers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Virtual Assistant (Chicago, IL)
Age: 29 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 17/20
Statement of Opinion:
- Accessing portable benefits would make balancing work and study a lot easier.
- I'm hopeful but skeptical about the real-world impact and accessibility.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 4 |
Independent Consultant (Denver, CO)
Age: 51 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 13/20
Statement of Opinion:
- While portable benefits are an interesting prospect, I have some frustration with existing systems failing to consider the needs of long-term independent workers.
- I believe this program can only be successful with proper implementation and feedback incorporation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 5 |
Film Industry Freelancer (Los Angeles, CA)
Age: 39 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 8/20
Statement of Opinion:
- It's promising to hear about such initiatives, but I hope it truly considers the irregular nature of freelance work in arts and entertainment.
- I'm hopeful for improvements with health and financial security processes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
Home-based Business Owner (Dallas, TX)
Age: 42 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 6.0 years
Commonness: 9/20
Statement of Opinion:
- Portable benefits could make a significant difference for solo entrepreneurs like me who juggle multiple roles.
- It's a welcome change, complementing personal business insurance plans.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Freelance Photographer (Boston, MA)
Age: 34 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 11/20
Statement of Opinion:
- The idea of portable benefits is timely and makes me optimistic about the future of freelance work.
- Access to affordable benefits could fundamentally change my financial planning.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
Cost Estimates
Year 1: $150000000 (Low: $100000000, High: $200000000)
Year 2: $150000000 (Low: $100000000, High: $200000000)
Year 3: $10000000 (Low: $5000000, High: $20000000)
Year 5: $5000000 (Low: $2000000, High: $10000000)
Year 10: $1000000 (Low: $500000, High: $2000000)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The scope of the pilot program significantly influences costs; the more diverse and numerous the pilot projects, the higher the expected cost.
- The complexity of designing new models that are both effective and scalable to provide portable benefits would require significant initial investment.
- Evaluation and reporting requirements by the Government Accountability Office introduce additional administrative costs.
- Impacts and effectiveness of these pilot projects need to be assessed comprehensively to determine potential savings and benefits.