Retirement Savings Security, 6455-6456 [2014-02423]

Download as PDF Federal Register / Vol. 79, No. 23 / Tuesday, February 4, 2014 / Presidential Documents 6455 Presidential Documents Memorandum of January 29, 2014 Retirement Savings Security Memorandum for the Secretary of the Treasury All Americans deserve the ability to save for retirement. Since taking office, my Administration has committed to strengthening retirement security for all Americans, including by helping workers find ways to save for retirement and to protect those hard earned savings. Unfortunately, too few Americans have enough savings to maintain their standard of living in retirement. But we know there are proven strategies that can help the average family save. Workplace-based retirement savings that allow workers to automatically take a portion of their pay and put it into a retirement account can increase retirement savings dramatically. Approximately 9 out of 10 workers automatically enrolled in a 401(k) plan continue to make contributions to that account compared to the less than 1 out of 10 eligible workers who voluntarily contribute to Individual Retirement Accounts. The positive effect of automatic contributions is especially pronounced among lower-income households and others with traditionally low savings rates. Unfortunately, only about half of all American workers have access to employer-sponsored retirement savings accounts. It is clear that we cannot continue on this course. The Department of the Treasury has worked diligently to develop a new tool that can make long-term savings a reality for more working Americans. A new kind of retirement savings tool could help American families as they start to build for their retirement. In order to make this tool available to working Americans, I hereby direct as follows: Section 1. Retirement Savings Security. (a) By December 31, 2014, you shall finalize the development of a new retirement savings security that can be made available through employers to their employees. This security shall be focused on reaching new and small-dollar savers and shall have low barriers to entry, including a low minimum opening amount. In developing this security, you shall ensure that it: (i) protects the principal contributed while earning interest at a rate based on yields on outstanding Treasury securities; tkelley on DSK3SPTVN1PROD with O1 (ii) offers savers the flexibility to take money out if they have an emergency and keep the same Treasury security if they change jobs; and (iii) is designed to help savers start on a path to long-term saving and serve as a stepping stone to the broader array of retirement products available in today’s marketplace. (b) Within 90 days of the date of this memorandum, you shall begin work with employers, stakeholders, and, as appropriate, other Federal agencies to develop a pilot project to make the security developed pursuant to subsection (a) of this section available through payroll deduction to facilitate easy and automatic contributions. Sec. 2. General Provisions. (a) Nothing in this memorandum shall be construed to impair or otherwise affect: (i) the authority granted by law to a department or agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. VerDate Mar<15>2010 17:50 Feb 03, 2014 Jkt 232001 PO 00000 Frm 00001 Fmt 4790 Sfmt 4790 E:\FR\FM\04FEO1.SGM 04FEO1 6456 Federal Register / Vol. 79, No. 23 / Tuesday, February 4, 2014 / Presidential Documents (b) This memorandum shall be implemented consistent with applicable law and subject to the availability of appropriations. (c) This memorandum is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. (d) You are authorized and directed to publish this memorandum in the Federal Register. THE WHITE HOUSE, Washington, January 29, 2014. [FR Doc. 2014–02423 Filed 2–3–14; 8:45 am] VerDate Mar<15>2010 17:50 Feb 03, 2014 Jkt 232001 PO 00000 Frm 00002 Fmt 4790 Sfmt 4790 E:\FR\FM\04FEO1.SGM 04FEO1 OB#1.EPS</GPH> tkelley on DSK3SPTVN1PROD with O1 Billing code 4811–33

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[Federal Register Volume 79, Number 23 (Tuesday, February 4, 2014)]
[Presidential Documents]
[Pages 6455-6456]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-02423]




                        Presidential Documents 



Federal Register / Vol. 79, No. 23 / Tuesday, February 4, 2014 / 
Presidential Documents

[[Page 6455]]


                Memorandum of January 29, 2014

                
Retirement Savings Security

                Memorandum for the Secretary of the Treasury

                All Americans deserve the ability to save for 
                retirement. Since taking office, my Administration has 
                committed to strengthening retirement security for all 
                Americans, including by helping workers find ways to 
                save for retirement and to protect those hard earned 
                savings. Unfortunately, too few Americans have enough 
                savings to maintain their standard of living in 
                retirement.

                But we know there are proven strategies that can help 
                the average family save. Workplace-based retirement 
                savings that allow workers to automatically take a 
                portion of their pay and put it into a retirement 
                account can increase retirement savings dramatically. 
                Approximately 9 out of 10 workers automatically 
                enrolled in a 401(k) plan continue to make 
                contributions to that account compared to the less than 
                1 out of 10 eligible workers who voluntarily contribute 
                to Individual Retirement Accounts. The positive effect 
                of automatic contributions is especially pronounced 
                among lower-income households and others with 
                traditionally low savings rates.

                Unfortunately, only about half of all American workers 
                have access to employer-sponsored retirement savings 
                accounts. It is clear that we cannot continue on this 
                course.

                The Department of the Treasury has worked diligently to 
                develop a new tool that can make long-term savings a 
                reality for more working Americans. A new kind of 
                retirement savings tool could help American families as 
                they start to build for their retirement. In order to 
                make this tool available to working Americans, I hereby 
                direct as follows:

                Section 1. Retirement Savings Security. (a) By December 
                31, 2014, you shall finalize the development of a new 
                retirement savings security that can be made available 
                through employers to their employees. This security 
                shall be focused on reaching new and small-dollar 
                savers and shall have low barriers to entry, including 
                a low minimum opening amount. In developing this 
                security, you shall ensure that it:

(i) protects the principal contributed while earning interest at a rate 
based on yields on outstanding Treasury securities;

(ii) offers savers the flexibility to take money out if they have an 
emergency and keep the same Treasury security if they change jobs; and

(iii) is designed to help savers start on a path to long-term saving and 
serve as a stepping stone to the broader array of retirement products 
available in today's marketplace.

                    (b) Within 90 days of the date of this memorandum, 
                you shall begin work with employers, stakeholders, and, 
                as appropriate, other Federal agencies to develop a 
                pilot project to make the security developed pursuant 
                to subsection (a) of this section available through 
                payroll deduction to facilitate easy and automatic 
                contributions.

                Sec. 2. General Provisions. (a) Nothing in this 
                memorandum shall be construed to impair or otherwise 
                affect:

(i) the authority granted by law to a department or agency, or the head 
thereof; or

(ii) the functions of the Director of the Office of Management and Budget 
relating to budgetary, administrative, or legislative proposals.

[[Page 6456]]

                    (b) This memorandum shall be implemented consistent 
                with applicable law and subject to the availability of 
                appropriations.
                    (c) This memorandum is not intended to, and does 
                not, create any right or benefit, substantive or 
                procedural, enforceable at law or in equity by any 
                party against the United States, its departments, 
                agencies, or entities, its officers, employees, or 
                agents, or any other person.
                    (d) You are authorized and directed to publish this 
                memorandum in the Federal Register.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    Washington, January 29, 2014.

[FR Doc. 2014-02423
Filed 2-3-14; 8:45 am]
Billing code 4811-33