For Immediate Release
July 24, 2023
Contact: Chantal Fuller, Communications Director
202-355-8431
cfuller@dccouncil.gov

                  CouncilmemberHenderson Introduced Legislation to Create A Retirement Saving Program for Employees Whose Workplaces Lack Retirement Programs

Washington, DC- Prior to the start of the DC Council’s legislative recess,Councilmember Henderson introduced the Automatic Retirement Savings Act of 2023. This legislation aims to support employees of our city’s small businesses. 

Small businesses and their employees are vital to the cultural vibrancy and economic health of the District. While many area employers, including the District government, offer retirement savings programs to their employees, approximately 173,000 employees in the District do not have access to a retirement savings account through their employer. That number may grow as more small businesses establish themselves in the city.  

This legislation addresses the gap in retirement savings access by establishing a Retirement Savings Board which would manage a universally available and voluntary Retirement Savings Program for employees of private businesses who are not offered a retirement plan through their workplace and for certain self-employed individuals. Employees would have 3% of their earnings automatically deducted from their wages to contribute to the program unless the employee makes an election not to contribute or to contribute a different amount. These accounts would also be portable if a participating employee changes jobs because the accounts would be managed by the District, not the employer.  

“If it is our goal forDC to comeback, we must create pathways that attract and retain small businesses. We must also allow the employees of these businesses to invest in their future security. A savings plan facilitated by the District would help alleviate the barriers that prevent employees whose employers do not offer long-term retirement savings options from saving for their future,” stated Councilmember Henderson. “This legislation will enable individuals to plan for their retirement and create a stronger, more resilient economy by having a source of income to help pay for living expenses and health care, among other things.”

The Automatic Retirement Savings Act of 2023 was co-introduced by Councilmembers Vincent C. Gray, Charles Allen, Matthew Frumin, Brooke Pinto, and Brianne K. Nadeau.  

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