LITTLE ROCK, Ark.- A state lawmaker is working ahead of the next session on legislation that could allow banks to start 401k plans for their communities.
St. Rep. Les Warren (R- Hot Springs) told the Joint Retirement committee Friday that many Arkansans are entering their retirement years without enough money saved up to retire, in part because there are no 401k plans available to them.
The State Treasurer’s Office came to him with the idea for this year’s session, but he couldn’t get it off the ground.
That’s why Warren sent it to interim study, ahead of 2021.
“An employer sometimes avoids this because of the cost of setting up a retirement plan,” Warren says. “But if they can get it through another source and the business does not have to pay for it and a business owner would contribute to a plan, I would just like to explore that option.”
One of Warren’s colleagues asked that credit unions be invited to the table, too.
Another worried this legislation would put Arkansas in direct competition with banks, insurance companies and financial services.