Utah employees may soon have to opt-out, rather than opt-in, to 401(k) retirement savings plans.
The Senate Business and Labor Committee on Tuesday gave unanimous support to SB131, which is modeled after a 2006 federal law. The bill would close loopholes by giving all public, private and nonprofit employers in Utah the ability to require employees to opt-out of the plan, said Sen. Wayne L. Niederhauser, R-Sandy. Currently employees have to opt in to plans.
"Some studies have shown that more than half of American households have zero savings in employer-based 401(K) plans," Niederhauser said. "We're trying through public policy to get more people saving for retirement."
The bill will now be debated by the full Senate.