Bill Overview
Title: A bill to amend the Employee Retirement Income Security Act of 1964 and the Internal Revenue Code of 1986 to improve retirement plan coverage for part-time workers.
Description: This bill shortens the maximum time, from three consecutive 12-month periods of at least 500 hours of service to two such periods, that an employer may require before a part-time employee is eligible for participation in certain employer-sponsored retirement plans.
Sponsors: Sen. Casey, Robert P., Jr. [D-PA]
Target Audience
Population: Part-time workers eligible for improved retirement plan access
Estimated Size: 26000000
- The bill targets part-time workers who work at least 500 hours in a year, reducing the required consecutive years from three to two before they can participate in retirement plans.
- Globally, part-time work is common in many economies, and the definitions of part-time can vary.
- The bill amends U.S. regulations, directly impacting workers in the United States.
Reasoning
- The policy primarily affects part-time workers who are unable to access retirement plans due to stringent eligibility criteria. By reducing the required number of consecutive years, more part-time workers can benefit earlier.
- Part-time workers often face financial insecurity, and easier access to retirement plans can improve their financial wellbeing. The range of part-time occupations is varied, including retail, warehousing, hospitality, and gig economy roles.
- The policy would be expected to yield different wellbeing outcomes depending on personal circumstances, such as age, additional sources of income, and overall life satisfaction.
- While the policy primarily benefits part-time workers, the actual impact on wellbeing may depend on how much value individuals place on access to retirement savings.
- Considering the large target population (26 million in the U.S.), the policy's funds must be distributed efficiently for significant impact, focusing on those who would utilize the retirement provisions effectively.
Simulated Interviews
Retail worker (Austin, TX)
Age: 23 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 15/20
Statement of Opinion:
- Access to a retirement plan sooner would be great, but I'm not sure how much I can contribute right now.
- It might help plan my finances better in the long run.
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 | 7 | 6 |
| Year 20 | 8 | 7 |
Warehouse staff (Columbus, OH)
Age: 42 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 10/20
Statement of Opinion:
- I want to save for retirement but never felt it was possible working part-time.
- This would definitely help secure a little bit more of my future.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 7 |
Gig economy driver (Santa Clara, CA)
Age: 36 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 8/20
Statement of Opinion:
- Retirement seems so far off, but if I can start saving now, it's a good opportunity.
- Helps me feel like I'm not losing out just because I don't work full-time.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 8 |
Chef (Seattle, WA)
Age: 29 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 12/20
Statement of Opinion:
- Having a retirement plan would be a big plus.
- I’m focused on my business for now, but I would participate when possible.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 8 |
Library assistant (Kansas City, MO)
Age: 57 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 7/20
Statement of Opinion:
- This policy is definitely going to help me, given my age and lack of retirement savings.
- There is finally a viable way to boost my savings.
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 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Freelance writer (Chicago, IL)
Age: 30 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- Starting a family, having a plan for the future, including retirement, is important.
- This policy helps align my long-term goals.
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 | 8 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Retail associate (New York, NY)
Age: 19 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 18/20
Statement of Opinion:
- I’m not really thinking about retirement right now.
- It's nice to know I’ll have something started once I graduate.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 8 |
Delivery driver (Boston, MA)
Age: 48 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- A retirement plan would definitely help, even if it’s small contributions.
- Gives me more control over future finances.
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 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 8 |
Fitness trainer (Boise, ID)
Age: 22 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 14/20
Statement of Opinion:
- Retirement? Seems far away, but starting something is better than nothing.
- Can balance fun with security.
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 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Part-time consultant (Miami, FL)
Age: 67 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- Although I’m nearing the end of contributing, this policy is a step in the right direction for younger folks.
- It won’t change much for me, but it's great to see progress.
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 |
Cost Estimates
Year 1: $500000000 (Low: $300000000, High: $800000000)
Year 2: $500000000 (Low: $300000000, High: $800000000)
Year 3: $500000000 (Low: $300000000, High: $800000000)
Year 5: $500000000 (Low: $300000000, High: $800000000)
Year 10: $500000000 (Low: $300000000, High: $800000000)
Year 100: $500000000 (Low: $300000000, High: $800000000)
Key Considerations
- Part-time workers often lack access to retirement savings plans, impacting their financial security in retirement.
- Standardizing the eligibility for retirement savings can help reduce inequality among different types of workers.
- The change may increase the financial obligations of employers towards retirement contributions, potentially affecting how they structure part-time roles.