New legislation in the state House would give employees of small businesses a new option to save for retirement.
The would allow workers to sign up for payroll deductions if their employer can't afford a retirement plan. Rep. Jarrod Lowery, R-Robeson, said the idea has support from the AARP.
"If we can get the average North Carolinian who isn't saving for retirement already to save $150 a month, we will have them in 10, 20, 30 years sufficiently prepared for retirement," Lowery said.
The state treasurer would administer the retirement accounts, but aside from a proposed $1 million allocation in the state budget for start-up costs, the program wouldn't require additional funding from the government.
Employees would be able to transfer their retirement accounts with them when they move to a new job.
Rep. Jeff McNeely, R-Iredell and a co-sponsor of the bill, owns a small agricultural business with 22 employees. He said the retirement savings program would help small businesses attract and retain workers.
"We have grown over the years, but still have always struggled to be able to compete for good employees with the larger companies, because we are not able to offer all the benefits that they are," McNeely said.
Similar legislation was filed in the House two years ago, but it didn't make it to a floor vote. But supporters hope the idea has a better shot this session.
Rep. Harry Warren, R-Rowan and a bill co-sponsor, told 瓜神app that the House Republican caucus includes more small business owners this year. And he said uncertainty around the future of Social Security at the federal level has led to more interest in other retirement savings models.
Michael Olender, state director for AARP, also voiced optimism about the bill's chances. "In previous years, the financial services industries have looked at this with some hesitation, just because of it being a possible competitor" to other retirement plans, he said. "We've looked at the states that have already implemented 'Work and Save,' and they have found it's actually a win-win for everybody."
According to AARP, nearly half of all private-sector workers in North Carolina work for an employment that doesn't offer a pension or retirement plan.
