*HR1541*
Introduced Version
HOUSE
RESOLUTION No. ___
Introduced by: VanNatter
____________________________________
1 A HOUSE RESOLUTION urging the Legislative Council
2 to assign to an appropriate study committee the topic of
3 financial security in retirement for all Hoosiers.
4 Whereas, The nation faces a vast retirement savings deficit
5 in which half of all households in the United States are on a
6 path that leads to financial insecurity during retirement;
7 Whereas, Social Security benefits for Indiana residents
8 average only $1,590 per month, and many workers rely on
9 employer-sponsored retirement plans to supplement their
10 income as they age;
11 Whereas, One-third of retirees are dependent on Social
12 Security for 90% or more of their income, according to Forbes
13 magazine in 2019, and Social Security is the only source of
14 income for three in 10 Indiana residents over the age of 65,
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1 according to the AARP;
2 Whereas, Employees who are unable to effectively build their
3 retirement savings risk becoming dependent on social safety net
4 programs that will cost taxpayer dollars later in their lives;
5 Whereas, The State of Indiana has a vested interest in
6 helping people save their own money for retirement in order to
7 be self-sufficient as they age;
8 Whereas, A study by the AARP found that Indiana taxpayers
9 could save $55.9 million on public assistance programs
10 between 2018 and 2032 if lower-income retirees save enough
11 to increase their retirement income by $1,000 more per year;
12 Whereas, Small businesses may not offer retirement plans to
13 their employees because of concerns about costs, complexity,
14 time burdens, and potential liability;
15 Whereas, Offering retirement plans to employees will make
16 businesses more competitive and help reduce employee
17 turnover;
18 Whereas, Nearly 40 million Americans do not have a
19 workplace retirement plan, and more than one million workers
20 in Indiana do not have a way to save for retirement at work;
21 Whereas, Workers who have a way to save for retirement by
22 utilizing a payroll deduction are 15 times more likely to save
23 for retirement;
24 Whereas, The aforementioned facts highlight a retirement
25 security crisis that will have significant impacts on state and
26 local government budgets and revenues as well as the economic
27 well-being of retirees, their families, and Hoosier communities;
28 and
29 Whereas, A national financial capability study found that
30 only 35% of Hoosiers and 37% of U.S. adults answered four to
31 five questions correctly out of a five-question survey regarding
32 personal finance management: Therefore,
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1 Be it resolved by the House of Representatives of the
2 General Assembly of the State of Indiana:
3 SECTION 1. That the Indiana House of Representatives
4 urges the Legislative Council to assign to an appropriate study
5 committee the tasks of: (1) studying how the State of Indiana
6 may reduce the regulatory and operational burden on small
7 businesses to promote payroll deduction as a retirement savings
8 option for employees; (2) studying the preparedness of Hoosiers
9 to retire in a financially secure manner; and (3) studying the
10 need for a statewide financial literacy strategy.
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