Proposed Voluntary Employee Retirement Accounts Program

SIFMA provides comments to the West Virginia Senate expressing concerns on proposed legislation, that would establish West Virginia Voluntary Employee Retirement Accounts Program (SB 488).

SIFMA agrees there is a savings challenge in this country. Individuals need to save more for retirement and need to better understand the benefits of compounding interest, diversification, and not accessing retirement savings accounts for other purposes.

However, SIFMA believes SB 488 is a step in the wrong direction. It would burden the State with additional costs and liability to develop, establish and administer a new program. Such a program would directly compete with the private market, which today provides a wide variety of individual retirement account options for employees who are ready to contribute a percentage of their annual compensation towards retirement.