The proposal for Washington Voluntary Retirement Accounts (WVRAs), HB 1893 and SB 5791, offers an easy mechanism for individuals to save for retirement.
WVRAs directly address the importance of a retirement program for about half of all workers who do not have a retirement savings plan in their workplace. Washington Voluntary Retirement Accounts enable individuals to invest in their future through a portable, voluntary, defined-contribution plan. The Washington State Legislature has the opportunity to establish WVRA in 2009.
The Economic Opportunity Institute (EOI) supports Social Security as the foundation of economic security for retirees. However, the Institute recognizes that it is important for individuals to supplement Social Security through a systematic retirement savings program. Although many workers have access to a retirement plan in their workplace, about half of all workers do not. To address the importance of saving for retirement, EOI proposes Washington Voluntary Retirement Accounts.
What Are Washington Voluntary Retirement Accounts?
Washington Voluntary Retirement Accounts give workers the chance to participate in a defined-contribution retirement savings plan at their workplace. The program will have a pre-selected menu of investment options, and is designed to be administered by the Washington State Department of Retirement Systems with investing done by the State Investment Board. It is portable and voluntary.
WVRAs give workers the convenience of payroll deductions and provide small businesses and their individual workers the economies of scale now only available to the largest investors. They increase the number of investors and the savings rate, building economic security for families and strengthening the state’s economy.
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