AUTOMATIC IRA BILL ON HILL

Washington, D.C. - Congressman Richard Neal, D-Mass., has introduced legislation that would allow companies to set up automatic payroll deposit individual retirement accounts, or Auto IRAs, for workers. "Our bill would require employers to automatically enroll employees in an Auto IRA unless the employee opts out," said Neal, who chairs the Subcommittee on Select Revenue Measures on the House Ways and Means Committee. "These are 'set it and forget it' payroll deposit accounts."

He noted recent research from Fidelity that showed only one in 10 workers who are eligible for automatic enrollment in employer-provided plans proactively opted out of the plan. The non-partisan Retirement Security Project has estimated that the proposal could raise net national savings by nearly $8 billion annually.

The bill introduced by Neal is known as the Automatic IRA Act of 2010. Similar legislation was introduced in the Senate in late August by Jeff Bingaman, D-N.M. In Bingaman's bill, employers would receive a $250 tax credit for each of the first two years that the plan was in operation, even if they contributed nothing. However, companies that failed to offer an automatic option to employees would be subject to an excise tax of $100 for each uncovered employee.

CFP BOARD TO START PUBLIC AWARENESS CAMPAIGN

Boston - The Certified Financial Planner Board of Standards has hired a group of agencies to lead a branding and public awareness campaign to raise the profile of the board. Arnold Worldwide's Washington, D.C., office has been selected as the agency of record to lead the branding and public awareness campaign, while Arnold's sister agency, MPG, will be responsible for online and offline media planning duties. Both Arnold and MPG are part of Havas Worldwide.

Initially, Arnold and MPG will partner with the CFP Board on research and strategy to help determine how to best position the brand and raise consumer awareness, which may include traditional, social media and digital components.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access