Lawmakers Look at State Retirement Plan

Tennessee lawmakers are considering legislation that would set up a voluntary retirement savings program for employers and employees.
More than a million Tennesseans don’t have access to a retirement savings program through their employer, and AARP’s Public Policy Institute estimates that people are 15 times more likely to save for retirement through a payroll deduction program.
Those two facts are what’s driving a bill in the state Legislature that would create a voluntary retirement savings program available to employers and their employees
AARP of Tennessee is among those supporting the legislation, which is sponsored by members of both parties. According to the AARP Public Policy Institute, if Tennesseans are able to save $1,000 a year, the state could save $260 million in future years by spending less on social services.
California, Illinois, Oregon, Connecticut, Maryland and Massachusetts have a state-run retirement savings program. Tennessee’s program would be the first in the country to be voluntary. Programs in other states are mandated.