Retirement specialists say that the Bush Administration is planning several changes to strengthen the 401(k) system for workers looking to save for retirement, according to Defined Contribution News.
Although administration officials are keeping it under wraps, some of the proposed changes include automatic enrollment, contribution increases tied to wage hikes, new default options to boost asset growth and increased disclosure on mutual fund costs borne by plans.
One reason given for the secrecy behind the government's 401(k) efforts is that the Bush Administration wants to keep it separate from its proposal to privatize Social Security. Democrats are likely to be much more supportive of improving 401(k) plans than they have been of privatizing Social Security. Peter Orszag, senior fellow at the Brookings Institution and a top strategist for his party, for example, is pushing for legislation that would change 401(k)s instead of changing Social Security.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.