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: Sen. Warner, Mark R. [D-VA]
Target Audience
Population: Independent workers globally involved in non-traditional employment
Estimated Size: 57000000
- The bill focuses on independent workers who typically do not receive traditional employer-provided benefits.
- Such workers include freelancers, contractors, gig economy workers, and part-time workers who do not have access to traditional employment benefits.
- The bill involves testing and implementing new ideas for benefit delivery to accommodate the job mobility characteristic of independent workers.
- The intention of the bill is to ensure that workers do not lose benefits when changing jobs or working several part-time positions.
Reasoning
- The budget limits require prioritizing initiatives that can provide broad impact and insights without spreading resources too thinly. Given the estimated 57 million independent workers, thoughtful targeting and innovation are necessary.
- Costs must align with the number of beneficiaries and potential lasting impacts; hence small, efficient trials should extend viable models.
- The policy impacts individuals differently depending on their current access to benefits, job stability, and the complexity of their income streams.
Simulated Interviews
freelancer (San Francisco, CA)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I've always worried about how I'm going to manage healthcare between gigs.
- If these benefits allow me to safely switch jobs without the headache of finding new insurance, that'd be a game changer.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 4 |
gig economy worker (Austin, TX)
Age: 37 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- Portable benefits would lift a huge burden. Currently, no savings for emergencies or healthcare.
- The inconsistency in work makes it hard to manage benefits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 3 |
| Year 10 | 8 | 3 |
| Year 20 | 7 | 3 |
part-time college instructor (Miami, FL)
Age: 45 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 8.0 years
Commonness: 6/20
Statement of Opinion:
- It would be great to have consistent benefits since pay varies monthly.
- The pilot could be a step towards better security for adjunct teachers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 4 |
| Year 20 | 8 | 4 |
independent contractor (New York, NY)
Age: 33 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- I often worry about losing benefits during transitions, especially health coverage.
- Having a portable benefits system could make planning for the future much simpler.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 9 | 5 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 3 |
| Year 20 | 8 | 3 |
freelance writer (Seattle, WA)
Age: 27 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- It's difficult to plan financially without stable benefits.
- Portable benefits would add a layer of security, enhancing mental and financial wellbeing.
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 | 4 |
| Year 10 | 7 | 3 |
| Year 20 | 6 | 3 |
self-employed (Chicago, IL)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 4/20
Statement of Opinion:
- As a business owner, portable benefits could help attract better employees.
- Flexibility could allow our part-time staff to feel more secure.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
actor (Los Angeles, CA)
Age: 40 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- Acting jobs come with no job security, so benefits are important.
- If this means health insurance and retirement plans become more accessible, that’s big.
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 | 8 | 4 |
| Year 10 | 8 | 3 |
| Year 20 | 9 | 2 |
gig economy worker (Denver, CO)
Age: 23 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- Balancing multiple gigs is stressful, but portable benefits could help softening that.
- Consistent access to healthcare would be my main interest.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 4 |
| Year 10 | 7 | 3 |
| Year 20 | 7 | 2 |
independent truck driver (Phoenix, AZ)
Age: 39 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- If benefits travel with me from job to job, that’d solve a lot of headaches.
- It's hard keeping track or maintaining coverage when switching clients.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 7 | 3 |
| Year 20 | 6 | 3 |
part-time retail worker (Boston, MA)
Age: 31 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- Managing multiple part-time jobs leaves little room for benefits.
- The worry about unexpected health costs would decrease with portable benefits.
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 | 3 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 2 |
Cost Estimates
Year 1: $100000000 (Low: $80000000, High: $120000000)
Year 2: $100000000 (Low: $80000000, High: $120000000)
Year 3: $100000000 (Low: $80000000, High: $120000000)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The initiative addresses the growing gig economy and irregular employment characteristics, a significant trend in the US job market.
- Evaluations by the Government Accountability Office will provide insights into efficiency and potential areas of cost reduction for future iterations of the program.
- Local economic conditions and demographic variations will influence the implementation effectiveness and the scope of the benefits.