State Retirement Reform: Lifting Up Best Practices

American workers are facing a retirement crisis. Almost half of workers do not have any type of retirement account at work. Those who do have access through their employer are likely to have a 401(k)-type account, which leaves workers vulnerable to leakages when they change jobs, inappropriate portfolios, and high fees. As a result, the current retirement savings system leaves a large portion of the American workforce without a consistent, secure, and efficient way to save for retirement. At a time when federal support for even modest proposals to increase retirement coverage and savings are being rolled back, states are moving forward – fast. Since 2011, 40 states have either proposed or enacted bipartisan measures to allow private sector workers in their state access to retirement savings accounts. While heralding the bipartisan effort and innovation of active states and their representatives, this discussion seeks to broaden options for future legislation by raising up best practices from the movement's early leaders. It does so through an analysis of the four major reform models according to their ability to facilitate the principles of effective reform, including universal coverage, mandatory participation, pooled assets, and guaranteed lifetime income.