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8 LONG TITLE
9 General Description:
10 This joint resolution of the Legislature urges Utah's workers and the business
11 community to work with the Legislature to develop a model for providing small
12 business retirement savings through the workplace.
13 Highlighted Provisions:
14 This resolution:
15 ▸ strongly urges Utah's workers and the business community to join with the
16 Legislature to study and develop a model for saving for retirement through the small
17 business workplace that is accessible to the workers of Utah and consider
18 legislation, if needed, to put the plan into action.
19 Special Clauses:
20 None
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22 Be it resolved by the Legislature of the state of Utah:
23 WHEREAS, for millions of people facing the risk of running out of savings after they
24 retire, a self-sufficient retirement is no longer a reality;
25 WHEREAS, more than 55 million American workers do not have a way to save for
26 retirement at work, leaving them more likely to rely on Social Security as their only source of
27 retirement income;
28 WHEREAS, the average annual Social Security benefit in Utah is $15,100;
29 WHEREAS, more than 244,000 Utah residents received Social Security in 2012;
30 WHEREAS, census data shows that about 7%, or 19,924, of older Utahns are living in
31 poverty, and without Social Security income, and an additional 35% of older Utahns, or 94,346
32 people, would fall into poverty;
33 WHEREAS, Utah's low and middle income older adults are even more reliant on Social
34 Security earned benefits, as they typically receive 72% of their family income from Social
35 Security;
36 WHEREAS, taxpayers shoulder the added burden of ensuring that retirees have their
37 basic needs met through safety net programs;
38 WHEREAS, Utahns' defined contribution account balances have remained stagnant
39 since the Great Recession;
40 WHEREAS, according to the Employee Benefit Research Institute (EBRI), half of
41 so-called "baby boomers" and "Generation X-ers" are at risk of financially insecure retirement;
42 WHEREAS, 50.3% of working Utahns currently do not have a way to save for
43 retirement at work;
44 WHEREAS, the nation and its working families face a vast retirement savings deficit,
45 estimated to be as much as $6.6 trillion, or about $57,000 per household;
46 WHEREAS, the median retirement account balance is $3,000 for all working-age
47 households and $12,000 for near-retirement households;
48 WHEREAS, polls show that 84% of Americans are concerned that current economic
49 conditions are impacting their ability to achieve a secure retirement;
50 WHEREAS, in Utah, 52.6% of workers have no access to a retirement plan, like a
51 401K, through their employer;
52 WHEREAS, nationally, only 14% of businesses with fewer than 100 employees offer
53 their employees a retirement savings account or pension;
54 WHEREAS, removing barriers to access retirement savings vehicles for the more than
55 525,000 Utahns with no way to save for retirement at work remains a great challenge;
56 WHEREAS, research shows that offering a person a way to save through their job
57 dramatically increases their ability to save;
58 WHEREAS, an individual is over 15 times more likely to save for retirement if the
59 employer offers a plan than if employees must find an Individual Retirement Account (IRA) on
60 their own;
61 WHEREAS, only 5% of people without access to a payroll deduction plan at work will,
62 on their own, purchase an IRA;
63 WHEREAS, in 2011, EBRI found that 88% of respondents indicated that it was
64 important to be able to have their own retirement savings plan contributions automatically
65 deducted from their paychecks;
66 WHEREAS, 86.45% of businesses in the state have fewer than 20 employees, but the
67 remaining businesses employ 76.3% of the population, or 970,269 Utahns;
68 WHEREAS, the vast majority of Americans will accept the responsibility to build a
69 financially secure retirement;
70 WHEREAS, a secure retirement should be made achievable for everyone who works
71 hard throughout their lives; and
72 WHEREAS, it is in the best interest of Utah's small business employees, Utah small
73 businesses, and the state for action to be taken now to enable Utahns to prepare for their futures
74 and allow them to be self-sufficient in retirement rather than depend on government services:
75 NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah
76 strongly urges Utah's small business employees and its small business community to join with
77 the Legislature and the Utah treasurer to study and develop a model for saving for retirement
78 through the workplace that is accessible to the workers of Utah and consider legislation, if
79 needed, to put the plan into action.
80 BE IT FURTHER RESOLVED that a copy of this resolution be sent to the Utah
81 Chapter of the American Federation of Labor and Congress of Industrial Organizations, the
82 Utah Chamber of Commerce, the Utah Association of Independent Insurance Agents, the Utah
83 Insurance Department, the Utah Small Business Development Center, and the members of
84 Utah's congressional delegation.
Legislative Review Note
as of 1-27-15 6:56 PM
Office of Legislative Research and General Counsel