Bill Overview
Title: Increasing Small Business Retirement Choices Act
Description: This bill permits an employer to use a retirement plan's assets for incidental expenses that are solely for the benefit of the plan's participants and their beneficiaries.
Sponsors: Sen. Rosen, Jacky [D-NV]
Target Audience
Population: Individuals employed by small businesses globally participating in employer-sponsored retirement plans.
Estimated Size: 30000000
- The bill affects retirement plans offered by small businesses.
- The beneficiaries are primarily employees of small businesses who are participants in employer-sponsored retirement plans.
- Small businesses include any business with fewer than 500 employees, which accounts for a significant portion of the workforce worldwide.
- Globally, small and medium-sized enterprises (SMEs) employ a large percentage of the population.
Reasoning
- The target population consists of employees in the U.S. working for small businesses that offer retirement plans, estimated to be around 30 million individuals.
- Not all small businesses may be able to change their retirement plan management due to budget constraints, so participation might be lower initially.
- The policy's budget constraints imply that only a fraction of small businesses might initially benefit from this policy, particularly those sufficiently engaged in managing employee retirement plans.
- It's important to account for a diversity of perspectives, including those unaffected by the policy due to lack of retirement benefits or differing business structures.
Simulated Interviews
Marketing Coordinator (New York City, NY)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- I'm optimistic about any policy that can improve retirement benefits at my job.
- We have a decent 401(k) match, but extra support would be helpful.
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 | 8 | 6 |
| Year 20 | 9 | 7 |
Construction Worker (Austin, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- It's great that some people will benefit, but without a plan at my company, it doesn't impact me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Software Engineer (San Francisco, CA)
Age: 29 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 12/20
Statement of Opinion:
- Enhancements to our retirement plan through new policies sound beneficial.
- I believe the firm will utilize these changes to improve our plan.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 10 | 8 |
Chef (Columbus, OH)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- I might think about shifting to a different retirement plan that benefits my staff more, if the new options save costs.
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 | 7 | 6 |
| Year 20 | 7 | 6 |
Retail Sales Associate (Miami, FL)
Age: 26 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 0.0 years
Commonness: 14/20
Statement of Opinion:
- It would be nice if we had some retirement plan benefits, but I don't see that happening soon.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 4 |
| Year 2 | 4 | 4 |
| Year 3 | 4 | 4 |
| Year 5 | 4 | 4 |
| Year 10 | 4 | 4 |
| Year 20 | 5 | 5 |
Graphic Designer (Denver, CO)
Age: 39 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- I think the policy might encourage my employer to offer additional benefits or incentives.
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 | 9 | 6 |
IT Specialist (Atlanta, GA)
Age: 40 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- We have a decent retirement plan, but if this helps reduce costs for benefits, it might help everyone.
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 | 8 | 7 |
| Year 20 | 8 | 7 |
Bookkeeper (Boise, ID)
Age: 51 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- This policy could simplify my job, reducing administrative burdens with our retirement plan.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Barista (Chicago, IL)
Age: 43 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 9/20
Statement of Opinion:
- Policies like these are good, but they don't change much for those without access to retirement plans.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Freelancer (Seattle, WA)
Age: 32 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- I'm looking for opportunities to save on management costs of my solo retirement plan.
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 | 9 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 10 | 8 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $7000000)
Year 2: $5000000 (Low: $3000000, High: $7000000)
Year 3: $5000000 (Low: $3000000, High: $7000000)
Year 5: $5000000 (Low: $3000000, High: $7000000)
Year 10: $5000000 (Low: $3000000, High: $7000000)
Year 100: $5000000 (Low: $3000000, High: $7000000)
Key Considerations
- The policy simplifies the administration of retirement plans for small businesses, potentially increasing adoption rates of employer-sponsored plans.
- Compliance requirements for using retirement funds for incidental expenses should be clearly defined to avoid misuse.
- The long-term impacts on retirement savings rates and financial security of employees should be monitored.