President Trump announced in his State of the Union address Tuesday night that he will give Americans who do not have employer-sponsored retirement plans access to government-run plans and match up to $1,000 in annual contributions.
The president pitched the proposal as a way to help “often-forgotten American workers” who do not have access to employer-sponsored 401(k) retirement accounts.
“Since I took office, the typical 401(k) balance is up by at least $30,000 … because the stock market has done so well,” Mr. Trump said. “Yet half of all of working Americans still do not have access to a retirement plan with matching contributions from an employer.”
Mr. Trump announced that starting next year his administration will give those Americans “access to the same type of retirement plan offered to every federal worker.”
“We will match your contributions with up to $1,000 each year,” he said.
Government workers are covered by the Federal Employees Retirement System, which provides benefits from three sources: a Basic Benefit Plan, Social Security and the Thrift Savings Plan, according to the Office of Personnel Management.
It was not immediately clear how Mr. Trump would allow non-government workers to tap into that system and if he could do so through executive order or need approval from Congress.
Matching contributions up to $1,000 annually would almost certainly require congressional approval.
• Lindsey McPherson can be reached at lmcpherson@washingtontimes.com.
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