Saying that "a minimum pension sounds like a minimum wage, and it is," a new report from think-tank and advocacy group Third Way has suggested that a minimum pension plan should become law.
While the actual number of people in the U.S. who do not participate in or are not offered an employer-provided plan varies, depending on whose statistics are used, the number is large. Even when they do save, most workers don't put away enough to avoid the possibility of running out of money during retirement.
The solution, according to Third Way, is a minimum pension plan that will require employers to sock away 50 cents per hour for each employee — either into an existing defined benefit or defined contribution plan that qualifies under the new proposed law, or into an Auto-IRA Account or a Savings Plan for Universal Retirement (SPUR) Account — "new, simple investment vehicles" that the report also proposes.
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