http://online.wsj.com/article/SB125211785932988285.html WASHINGTON -- The White House unveiled a series of administrative moves aimed at making it easier for workers to build up their savings.
The announcement marks the administration's latest effort at "rebuilding" the economy and putting struggling workers on better footing, aides said.
"We have to revive this economy and rebuild it stronger than before," President Barack Obama said in his weekly Saturday address. "And making sure that folks have the opportunity and incentive to save -- for a home or college, for retirement or a rainy day -- is essential to that effort. If you work hard and meet your responsibilities, this country is going to honor our collective responsibility to you: to ensure that you can save and secure your retirement."
The moves largely depend on employers or workers, or both, taking action. But White House officials said tens of millions of families could benefit.
One change makes it easier for employers, particularly small and midsize businesses, to start automatically enrolling employees in workplace savings plans. Workers would retain the ability to opt out of the plans.
Almost half of large companies already have automatic enrollment for their workplace savings plans. Shifting to automatic enrollment increases participation to 90% from 70%, and particularly benefits low-income workers, White House aides said. The administration's changes will generally streamline the process for employers to adopt automatic enrollment by issuing preapproved language employers can use to amend their plans.
The changes also will make it easier for taxpayers to buy federal savings bonds using their federal income-tax refunds and allow workers to convert unused vacation or leave into savings, if their employers are agreeable.
The administration also is pushing legislation in Congress that would go much further. It would automatically enroll workers in Individual Retirement Accounts when their employers don't offer a workplace savings plan. About half the U.S. work force, or about 78 million people, lack access to workplace plans.
"Just as the administration is dedicated to reviving the economy and getting people back to work, so too it is dedicated to helping put retirement security within the reach of all Americans," Treasury Secretary Timothy Geithner said in a statement.
Many contributions by lower-wage workers would be matched by an existing federal savers tax credit. Mr. Obama also wants to expand the credit's availability.
As long as the opt out option is clearly presented to new employees and it seems their is no additional burden to small businesses this sounds like the first reasonable decision Obama has made.
except forcing Van Jones out.
