Compliance April 15, 2025

American Worker Retirement Plan Act Reintroduced in House

The bill would offer federally run retirement savings plans to low- and middle-income workers with no access to an employee-sponsored plan.

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Representative Lloyd Smucker, R-Pennsylvania, reintroduced on April 7 the Retirement Savings for Americans Act, which would offer federally run retirement savings accounts for low- and middle-income workers who do not have access to an employer-sponsored retirement plan.

If passed, the Department of the Treasury would administer the program, which would offer matching contributions of up to 5% via a 1% automatic contribution and a tax credit match of up to 4%. The latter match would be phased out at the national median income level.

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Eligible workers would be automatically enrolled at 3% of their income, with an option to opt out or increase their contributions.

The legislation would work similarly to many states’ automatic individual retirement account programs, which currently exist, in multiple formats, in 20 states as of January 1, according to the Georgetown Center for Retirement Initiatives.

The bill is cosponsored by Representatives Terri Sewell D-Alabama; Nicole Malliotakis, R-New York; Claudia Tenney, R-New York; Brian Fitzpatrick, R-Pennsylvania; Carol Miller, R-West Virginia; and Adrian Smith, R-Nebraska. It was referred to the House Committee on Education and the Workforce and to the House Committee on Ways and Means.

Senator John Hickenlooper, R-Pennsylvania, had introduced the bill in 2022, and it was reintroduced by Hickenlooper and Senator Thom Tillis, R-North Carolina, in 2023.

Supporters of the bill, such as the Economic Innovation Group, a bipartisan public policy organization, tout the legislation’s ability to offer low- to middle income workers the opportunity to save a sufficient amount for retirement.

A 2024 EIG study found that 74.8% of full-time workers earning less than $26,400 per year lack access to an employer-sponsored retirement plan, compared with 17.3% of those earning at least $174,300 per year.

In 2023, the bill received statements of support from DoorDash and Uber, whose gig workers would likely benefit from the program.

However, opponents of the bill say the legislation would disincentivize employers from sponsoring retirement plans, while the federal matching element could lead employers with existing plans to terminate their plans.

A 2024 Morningstar report suggested that the legislation could reduce the median wealth at retirement age by 20% and 12% for Generation Z and Millennial workers, respectively, due to reductions in the number of employer-sponsored defined contribution plans and lower default contribution rates.

Similarly, the American Retirement Association, an advocacy group for the private retirement industry, heavily advocated against the bill in 2023. According to the ARA, the bill would threaten the private retirement industry, and similar retirement offerings, such as state-run auto-IRAs and others authorized by the SECURE 2.0 Act of 2022, can provide sufficient retirement saving opportunities to employees of small businesses and to gig workers.

Deals and People April 15, 2025

Financial Finesse Appoints New President

Todd Lacey will lead the financial wellness platform’s development amid the growing demand for personalized coaching solutions.

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Todd Lacey

Financial Finesse announced the appointment of Todd Lacey as president, slated to play a “critical role” in the financial wellness platform’s expansion and in the company’s plans to meet the growing demand for personalized financial coaching solutions.

Lacey’s appointment is planned to allow CEO Liz Davidson to focus more on the company’s vision and strategic direction, dedicating her time to innovations, partnerships, investments and acquisitions, according to the announcement.

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Lacey previously served as the chief revenue officer at Stadion Money Management; executive vice president of investments and retirement strategy and corporate development for Transamerica; and founder and president of the Klarity Group. He brings expertise in business development, scaling operations and “leading high performing teams.”

“My goal is to help take Financial Finesse to the next level—scaling the business in a way that expands our reach while enhancing the personalized, high-impact coaching we’re known for,” Lacey says.

With nearly three decades of experience in retirement and benefits, Lacey says he will focus on expanding Financial Finesse’s sales and business development efforts and building its infrastructure to meet the growing demand.

“It’s important to me that we grow with intention—making sure our teams stay aligned with our mission to increase our impact in changing users’ financial lives and delivering measurable ROI to our clients and partners,” he says.

Davidson says Lacey’s appointment comes at a “pivotal moment for Financial Finesse.”

“Demand for financial coaching is rising rapidly, and more companies are recognizing its value—not just for employee well-being, but for overall organizational success,” she says. “[Lacey] brings the expertise we need to scale our impact while strengthening the quality of our services.”

Davidson adds that she is excited to “return to her entrepreneurial roots” and continue working on the company’s artificial intelligence-based financial coaching solutions to motivate employees to take action to improve their finances.

Financial Finesse’s AI coach, “Aimee,” is backed by human planners and 25 years of live coaching experience. According to the company, Aimee provides employees with a unique financial wellness score based on data connected to their account, as well as a personalized action plan to help them achieve their financial goals.

Financial Finesse also recently partnered with workplace emergency savings account provider SecureSave to help users more seamlessly sign up for emergency savings accounts and view their savings progress in real time.

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