EIG CONTACT: Amelia Sandhovel | [email protected]
Washington, D.C. — The Economic Innovation Group (EIG) commended the US Conference of Mayors for adopting a bipartisan resolution on Monday calling on federal policymakers to strengthen retirement security for low- and middle-income workers by enacting a new program modeled on the successful Thrift Savings Plan (TSP), which has helped millions of federal workers and members of the military save for retirement.
The resolution was sponsored by Denver Mayor Michael B. Hancock and co-sponsored by Birmingham Mayor Randall Woodfin, College Park Mayor Patrick L. Wojahn, Des Moines Mayor Frank Cownie, Fort Lauderdale Mayor Dean J. Trantalis, Madison Mayor Satya Rhodes-Conway, Oklahoma City Mayor David Holt, San Diego Mayor Todd Gloria, and Tempe Mayor Corey Woods. Its passage demonstrates continued momentum following the recent announcement of a bipartisan, bicameral congressional working group to develop policy solutions to boost retirement security and improve access to well-designed savings plans for millions of American workers.
“EIG applauds the US Conference of Mayors for recognizing that every hard-working American should have the tools they need to save and build a nest egg for their family,” said EIG President and CEO John Lettieri. “Providing access to high-quality savings plans and meaningful incentives for low- and middle-income workers–most of whom are currently overlooked by federal retirement policy–would be a major step towards improving the well-being of millions of workers and families across the country.”
“The country’s mayors are calling on Congress to come together on a bipartisan basis to invest in hardworking low- and middle-income Americans by ensuring they have access to high-quality savings plans and well-designed incentives that encourage work and savings,” Mayor Hancock said. “The opportunity to save for a fulfilling retirement will help to level the playing field for those working hardest and ensure multi-generational financial security for families across the country.”
In 2021, EIG outlined the proposal to give working Americans access to a program modeled after the TSP and detailed its transformative potential in a white paper co-authored by a bipartisan pair of economists, Professor Teresa Ghilarducci and Dr. Kevin Hassett.
Existing federal tax benefits to incentivize retirement savings disproportionately benefit higher-earning workers, leaving low- and middle-income working Americans struggling to build long-term wealth and ensure a comfortable retirement. The median retirement account balance among working Americans is $0, and roughly half of households do not anticipate being able to maintain their standard of living during their golden years. A recent EIG national survey found that the vast majority of voters (81 percent) are concerned about retirement security – a sentiment shared by voters in both parties with 86 percent of Democrats and 76 percent of Republicans agreeing on the issue’s importance.
View the full text of the US Conference of Mayors resolution here.
To learn more about how a retirement program modeled on the Thrift Savings Plan would create more opportunities for American workers to build wealth, visit inclusivewealth.eig.org.
About the Economic Innovation Group (EIG)
The Economic Innovation Group (EIG) is a bipartisan public policy organization dedicated to forging a more dynamic and inclusive American economy. Headquartered in Washington, DC, EIG produces nationally-recognized research and works with policymakers to develop ideas that empower workers, entrepreneurs, and communities.