The people of Washington who have no retirement benefits plan offered by the employers would soon be able to save for retirement by themselves by using a state-run online portal. People would have the option of choosing from a variety of retirement plans that are scrutinized and approved by the state. When the employees switch the jobs, the plan would still be constant. The online portal is first of its kind to be launched in the USA.
Online Retirement Benefits Plan Approved by Law
The online portal offering retirement benefits plan was created only after getting the approval of state lawmakers in the year 2015. The Small Business Retirement Marketplace would be operational from January 1, 2017. It will be open to even the employees working in small companies. The portal would be very much alike the Washington Health Exchange that offers health insurance to all the people in the state.
The Facts
It is a fact that just 35 percent of small businesses present in Washington state offer retirement plans to the full-time workers. This percentage is even less, just 13 percent of the part-time workers. There are more than 1,37, 000 small businesses in Washington. These facts were revealed by the Washington state Department of Employment Security.
The Department also estimated that about 1.1. million people living in Washington or about 45 percent of all the workers have no retirement plans at all.
The Portal
When the employees have access to the portal, they would be able to select a plan they like from several available plans offered by retirement plan providers. The retirement plan providers would be thoroughly screened by the Washington state. The system would also not restrict the employees by asking for a minimum contribution so the employees can save whatever amount they like. The plan would be active even when an employee switches employers.
First of Its Kind
Washington is the first state of the USA to launch this marketplace. Several other states such as Maryland, California, Connecticut, etc. are trying to implement a similar program but the proposals are yet to get a legislative approval.
The Contributions
The marketplace for retirement benefits plans would let the employees donate via the employers’ payment system. As per this system, the amount would be automatically deducted from a paycheck. If the employer is not in favor of the salary deduction, the contributions can also be taken from the bank account of a person.
