A new bill would mandate employer contributions towards participants’ retirement savings.
Introduced by Democratic Reps. Scott Peters (D-CA) and Norma Torres (D-CA), the “Saving for the Future Act” aims to increase Americans’ retirement savings while helping workers save for short-term emergencies.
According to the bill, employees who work for the smallest companies would be able to save through “UP accounts,” a federal savings tool modeled after thrift savings plans (TSPs) that offers low fees and plan portability.
Under the legislation, companies with ten or more employees would be required to contribute at least 50 cents per hour worked to participants’ retirement accounts. This minimum would increase to 60 cents after two years and continue rising in line with wage growth.
The first $2,000 in savings would go to a worker’s “UP-Savings account” dedicated to “non-routine” expenses, while additional contributions would be incorporated into an “UP-retirement account.” Workers would automatically be enrolled to contribute 4% of their own earnings but are allowed to opt out or choose a different contribution level, with the highest being 10%.
“Nearly a third of workers don’t have access to retirement plans through their job and are just one problem away from a financial crisis,” said Torres. “In the Inland Empire, too many families are struggling to afford groceries and pay rent. The Saving for the Future Act would change that by giving working families a real chance to build wealth, prepare for emergencies, and secure their future.”
Recent research shows improved levels of financial wellness among workers who have saved for emergency encounters. A 2025 study from Vanguard found that those who have at least $2,000 in emergency savings report a 21% increase in financial wellbeing.
“Today’s cost of living crisis means most Americans aren’t able to put enough money away for retirement or protect their families from unexpected emergency costs,” added Peters. “The Saving for the Future Act would help hardworking Americans build wealth through employer contribution plans. Now more than ever, retirement benefits should follow a worker as they move to new companies throughout their career. This legislation expands proven models of employer-provided savings and invests in portable benefits, so Americans can save for a more secure and prosperous future.”
While the bill was presented in the House of Representatives, the Democratic-led legislation isn’t likely to see much movement in the Republican-dominated government branches. Outside of legislative support, the bill has backing from organizations including AARP, the Service Employees International Union (SEIU), and more.