Bill Overview
Title: RISE & SHINE Act
Description: This bill makes various changes with respect to employer-sponsored retirement plans. For example, the bill allows plans sponsored by charities, educational institutions, and nonprofit organizations (i.e., 403(b) retirement plans) to participate in multiple employer plans and pooled employer plans. The bill also revises the notice and disclosure requirements for certain retirement plans, and it permits plan sponsors to make emergency savings accounts available to participants of defined contribution plans.
Sponsors: Sen. Murray, Patty [D-WA]
Target Audience
Population: Individuals with employer-sponsored retirement plans
Estimated Size: 68000000
- The bill impacts employer-sponsored retirement plans, which are common in many countries but especially in the United States.
- The changes include allowing 403(b) plans, typically for employees of schools, hospitals, and other non-profits, to participate in larger pooled plans.
- Many employees of charities, educational institutions, and non-profits are in these 403(b) plans.
- There are revised notice and disclosure requirements, affecting plan administrators and sponsors globally whose plans might align with such standards.
- Emergency savings provisions might encourage participation in such plans among those who are otherwise hesitant.
Reasoning
- The RISE & SHINE Act impacts a wide range of individuals, particularly those employed by non-profits, educational institutions, and charities where 403(b) plans are common.
- Individuals with retirement plans might experience different levels of impact depending on their personal financial situations, understanding of retirement planning, and the specifics of their employment benefits.
- The overall budget of $50,000,000 USD in the first year might limit extensive outreach or substantial changes for every participant; however, it may improve core aspects like plan accessibility and clarity, particularly in emergency savings accounts.
- The bill may not dramatically change the wellbeing for those already comfortable with their retirement savings but could significantly benefit individuals who are underprepared or anxious about future savings.
Simulated Interviews
University Professor (New York, NY)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I appreciate that the bill might allow our 403(b) plans to be part of a larger pool, potentially reducing fees.
- Emergency savings accounts are a good idea, but I am more interested in long-term retirement savings.
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 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Non-Profit Staff Member (Austin, TX)
Age: 30 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- The idea of emergency savings is appealing as I often worry about short-term financial issues.
- I haven't really thought about retirement planning, but maybe this will offer more clarity.
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 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 6 |
Public School Teacher (Los Angeles, CA)
Age: 52 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- It sounds like this could streamline some of the bureaucracy around our retirement plans.
- I value long-term stability more than anything. If this helps, I'm all for it.
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 | 7 |
| Year 20 | 9 | 8 |
Hospital Administrator (Chicago, IL)
Age: 58 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- Hopefully, the policy will improve the stability and options within our retirement plan.
- I'm concerned about the lower returns on defined contribution plans, this doesn't seem to address that much.
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 | 9 | 8 |
| Year 20 | 9 | 8 |
Research Scientist (Seattle, WA)
Age: 38 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- The ability to join larger pooled employer plans could be beneficial, but I'm not sure how much it will change my situation.
- I've always been proactive with retirement, so this seems like a modest improvement for people in my bracket.
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 | 8 |
| Year 20 | 9 | 9 |
Financial Advisor (Miami, FL)
Age: 49 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- I advise clients often on 403(b) plans, and this sounds like a beneficial update especially for those needing emergency savings.
- It may not have broad effects unless coupled with additional financial education.
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 | 9 |
Museum Curator (Boston, MA)
Age: 41 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 7/20
Statement of Opinion:
- There's a possibility it might decrease fees which is always a good thing.
- The logistics of these plans sometimes feel opaque, I'm hopeful for clearer communication.
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 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 8 |
High School Counselor (Denver, CO)
Age: 55 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 8.0 years
Commonness: 8/20
Statement of Opinion:
- I like the idea of emergency saving accounts as an added layer of protection.
- I don't expect this will change my plans much, but it might help younger colleagues.
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 | 8 |
| Year 20 | 9 | 8 |
Social Worker (San Francisco, CA)
Age: 28 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- Emergency savings are critical and this could potentially encourage me to start saving more effectively.
- I worry more about day-to-day financial issues but this seems like a step in the right direction.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 7 |
Retired Nurse (Atlanta, GA)
Age: 62 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 4/20
Statement of Opinion:
- Retirement policies are always a concern. I hope this secures better management for everyone involved.
- I'm less impacted now, but I hope it supports the system for future retirees.
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 | 6 | 5 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Cost Estimates
Year 1: $50000000 (Low: $40000000, High: $60000000)
Year 2: $51000000 (Low: $41000000, High: $61000000)
Year 3: $52020000 (Low: $41500000, High: $62000000)
Year 5: $54600000 (Low: $45000000, High: $64500000)
Year 10: $60000000 (Low: $50000000, High: $70000000)
Year 100: $100000000 (Low: $80000000, High: $120000000)
Key Considerations
- The policy aims to enhance the retirement readiness of workers in non-profit sectors, aligning their savings opportunities more closely with those in corporate plans.
- Costs will likely stem from modifications in plan structures and compliance requirements.
- Potential cost reductions could result from efficiency gains in pooled plan management and aligned requirements.