Senator Todd Weiler proposes the following substitute bill:


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JOINT RESOLUTION ON SMALL BUSINESS RETIREMENT

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PLAN AVAILABILITY

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2015 GENERAL SESSION

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STATE OF UTAH

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Chief Sponsor: Todd Weiler

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House Sponsor: Jon Cox

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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
21     

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, the nation and its working families face a vast retirement savings deficit,
43     estimated to be as much as $6.6 trillion, or about $57,000 per household;
44          WHEREAS, the median retirement account balance is $3,000 for all working-age
45     households and $12,000 for near-retirement households;
46          WHEREAS, polls show that 84% of Americans are concerned that current economic
47     conditions are impacting their ability to achieve a secure retirement;
48          WHEREAS, in Utah, 52.6% of private sector workers have no access to a retirement
49     plan, like a 401K, through their employer;
50          WHEREAS, nationally, only 14% of businesses with fewer than 100 employees offer
51     their employees a retirement savings account or pension;
52          WHEREAS, removing barriers to access retirement savings vehicles for the more than
53     525,000 Utahns with no way to save for retirement at work remains a great challenge;
54          WHEREAS, research shows that offering a person a way to save through their job
55     dramatically increases their ability to save;
56          WHEREAS, an individual is over 15 times more likely to save for retirement if the

57     employer offers a plan than if employees must find an Individual Retirement Account (IRA) on
58     their own;
59          WHEREAS, only 5% of people without access to a payroll deduction plan at work will,
60     on their own, purchase an IRA;
61          WHEREAS, in 2011, EBRI found that 88% of respondents indicated that it was
62     important to be able to have their own retirement savings plan contributions automatically
63     deducted from their paychecks;
64          WHEREAS, 86.45% of businesses in the state have fewer than 20 employees, but the
65     remaining businesses employ 76.3% of the population, or 970,269 Utahns;
66          WHEREAS, the vast majority of Americans will accept the responsibility to build a
67     financially secure retirement;
68          WHEREAS, a secure retirement should be made achievable for everyone who works
69     hard throughout their lives; and
70          WHEREAS, it is in the best interest of Utah's small business employees, Utah small
71     businesses, and the state for action to be taken now to enable Utahns to prepare for their futures
72     and allow them to be self-sufficient in retirement rather than depend on government services:
73          NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah
74     strongly urges Utah's small business employees and its small business community to join with
75     the Legislature and the Utah treasurer to study and develop a model for saving for retirement
76     through the workplace that is accessible to the workers of Utah and consider legislation, if
77     needed, to put the plan into action.
78          BE IT FURTHER RESOLVED that a copy of this resolution be sent to the Utah
79     Chapter of the American Federation of Labor and Congress of Industrial Organizations, the
80     Utah Chamber of Commerce, the Utah Association of Independent Insurance Agents, the Utah
81     Insurance Department, the Utah Small Business Development Center, and the members of
82     Utah's congressional delegation.