Obama proposes mandatory employer-sponsored pensions

by Jake Simms

Heads up: The Obama administration is floating a plan to require most businesses to set up an employee pension plan.

Its 2012 federal budget proposal (not yet passed by Congress) proposes new requirements for employer-sponsored programs.

Firms with at least 10 employees in business for at least 10 years would have two options:

For firms that choose the 401(k) route, employees must be automatically enrolled, unless they opt out.

The only good news for employers: They won’t be required to contribute or match employee contributions.

Sound like a good idea? Sound off below.

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