Retirement Savings Security

This memorandum directs the Treasury Secretary to create a new retirement savings security product by December 31, 2014, designed for small-dollar and new savers with low barriers to entry, principal protection, and portability between jobs. It also requires launching a pilot project within 90 days to test payroll-deduction distribution through employers.

Federal Register Open PDF 79 FR 6455

Impact dates

Dec 31, 2014
Finalize development of new retirement savings security
Apr 29, 2014
Begin pilot project with employers for payroll deduction

Key directives

Finalize development of new retirement savings security by December 31, 2014
Security must protect principal and earn interest based on Treasury securities yields
Security must allow emergency withdrawals and portability between jobs
Security must be designed as stepping stone to broader retirement products
Begin pilot project with employers within 90 days for payroll deduction availability

Who is ordered

Secretary of the Treasury · Treasury

Timeline

Immediate

Treasury begins developing new retirement savings security

Near term (90d)

Pilot project development with employers and stakeholders begins

Long term

New retirement savings security finalized and available; potential expansion of retirement access for uncovered workers

Risks & tensions

Dependent on Treasury implementation capacity and appropriations availability
Voluntary employer participation may limit uptake; no mandate on employers to offer
Low-yield Treasury-based returns may be unattractive in rising rate environments
Pilot project scope and success metrics not specified
Creates no enforceable rights—implementation could stall without consequence