Warner and Himes introduce portable retirement and investment accounts law
Two lawmakers have introduced a measure they say aims to create accessible, universal and portable retirement and investment accounts while modernizing the country’s retirement system.
Senator Mark Warner (D-VA) and Representative Jim Himes (D-CT) said their bill, the Portable Retirement and Investment Account (PRIA) Act of 2021, would attract more people into the retirement system and would make it easier for the Americans. to save.
“Americans are more likely to change jobs and be engaged in non-traditional forms of work than they were a generation ago, but our policies have not kept up with these changes,” said Warner. “As more Americans take on multiple jobs over the course of a career, a year, and even a day, PRIA will provide more workers with access to flexible and portable benefits such as savings. -retirement which will accompany them from employer to employer and together in concert. . “
Through legislation, every American will receive a PRIA when they receive a Social Security number, and the PRIAs will be administered by an independent board of directors – managed by selected financial institutions.
When creating the initial account, account holders have the option of choosing investment opportunities with a qualified financial institution, depending on the measure.
“The current retirement system doesn’t work for all Americans,” Himes said. “The options that American workers have access to can differ significantly depending on their field of employment, and the systems can be unnecessarily confusing. Additionally, many Americans lose access to retirement savings vehicles if they lose their jobs, and part-time, contract, and part-time workers are often ineligible. PRIA changes all that.