Investment Firm Seeks to Expand Access to Retirement Benefits

State Street Global, an investment giant of Boston seeks government help to ensure that all the private sector employees to get better access to retirement benefits. The company has asked the government to make some laws that will increase the retirement benefits coverage of private sector employees. The company does not wish the government to launch an expensive retirement plan and applauds the steps taken by the government to boost retirement saving opportunities.

The Open Letter Seeking Better Retirement Benefits

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The Boston Investment giant released an open letter to the government recently and insisted on ensuring that steps to boost retirement benefits for private sector employees are taken soon. The letter suggested steps like making it mandatory for employers to enroll all employees in 401(k)-type savings plans. The letter also proposed that the private employers must offer default investments like target-date funds that include some stock and some bond funds. These basic investments should be based on the risk appetite and age of the employee.

Tax Credits

The company also expects the government to offer some tax credits to small employers. It will allow them to cover the administrative costs related to the retirement plans. It was also suggested that businesses must be allowed to group together to offer retirement plans.

The Need

Ron O’Hanley, who serves as the State Street Global’s Chief Executive recently stated that the problem of lack of retirement funds for the private sector employees is a direct threat to the overall society and the well-being of future generations. He also shared that the company does not want the government to launch any other expensive plan but just wishes for better access to retirement benefits to the private sector workers.

The Plan

O’Hanley also revealed that the company planned to seek the help of other investment managers so that the concept can be pushed at the lawmakers.

Seeking Betterment

O’Hanley has appreciated the efforts made by the Congress and the White House for expanding the retirement savings opportunities. But the company also thinks that there is a need for a national and bipartisan answer that promises workplace coverage in a retirement savings plan.

The Progress

It is pertinent to mention that as per the latest report of the Government Accountability Office on retirement security about 40 percent of working households don’t have any means to access an employer-sponsored defined-contribution retirement benefits plan.