Washington, D.C. (January 29, 2014) – The president’s retirement security initiative announced last night during the State of the Union address represents an important contribution to the discussion about boosting Americans’ retirement security.

Retirement security is a vital issue for Americans of all ages. Americans can choose from many savings options when planning for retirement including annuities, IRAs and employer-based retirement plans.

While most Americans receive retirement plan coverage through the workplace, not all employers are in a position to offer such a benefit. That is why ACLI strongly supports proposals to offer small employers “Starter 401(k) Plans” and improvements to auto enrollment rules. If adopted, these proposals could be especially helpful in expanding coverage to workers at small businesses, which include many part-time workers. Small businesses frequently lack the resources required for plan sponsorship.

The president’s “MyRA plan” may be another useful tool to encourage people to start saving for retirement. ACLI agrees with his assessment that employers that do not offer a retirement plan should be encouraged to offer an auto-enroll IRA.

ACLI supports building on the solid foundation of the nation’s voluntary, private retirement plan system.  Incentives are needed to help employers sponsor plans and for workers to save for the long term. Any recommendation to further limit the amount workers can save in tax-qualified plans represents ill-advised policy.

ACLI looks forward to working with the Administration and Congress on proposals to help provide Americans with the tools and resources they need to enjoy a secure retirement.