State Rep. Charlie Baum, R-Murfreesboro, has proposed a retirement savings plan to support Tennesseans who don’t have access to one through their employer.
NASHVILLE, Tenn. – State Rep. Charlie Baum, R-Murfreesboro, has proposed a retirement savings plan to support Tennesseans who don’t have access to one through their employer.
The Tennessee Retirement Savings Plan Act, or House Bill 1447, would create a state-facilitated, employee-funded retirement savings plan, similar to a 401(k), for eligible private-sector employees.
“Every hardworking Tennessean deserves the opportunity to save for retirement, whether they work for a small business, are self-employed or otherwise don’t have a plan through their job,” Baum said. “This legislation creates a voluntary, employee-funded option that allows workers to build their own retirement savings and support long-term financial security for their families.”
Eligible participants would include Tennessee residents employed in the state whose employer does not offer a qualifying retirement plan. Participation would be voluntary and accounts would be individually owned, allowing workers to take their savings with them when changing jobs or roll funds into another retirement account.
The plan would be created, designed and overseen by a seven-member board including the state treasurer or his designee, employer and employee representatives, an investment expert, a retiree, and two members of the General Assembly who would serve in non-voting, advisory roles.
While the board is within the Tennessee Department of Treasury, the plan would be professionally managed by a private, third-party provider.
One in five Americans over the age of 50 reportedly have no retirement savings and more than half worry they will not have enough money to support them in retirement, according to a 2024 study by the AARP.
Lawmakers will reconvene for the second session of the 114th General Assembly on Jan. 13.
Charlie Baum represents District 37 which includes part of Rutherford County.
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