Sen. Rubio: Open Federal Savings Plan to Private Sector

By Andrew Remo • May 14, 2014 • 0 Comments

Lauding the federal Thrift Savings Plan as “one of the most efficient savings plans in America,” Sen. Marco Rubio (R-Fla.) urged that the DC plan for federal employees be made available to private workers nationwide. Rubio, a potential 2016 presidential candidate, floated the idea in a May 13 speech at the National Press Club in Washington, D.C. 

“It sounds like Rubio wants to ‘Obamacare’ retirement savings,” said Brian Graff, CEO/Executive Director of NAPA and ASPPA.

Rubio also offered ideas for reforming Social Security, including:

  • increasing the retirement age for future retirees; and
  • eliminating payroll taxes and the Retirement Earnings Test for older workers. 

Rubio spoke in general terms about redistributing the Social Security benefit earned by wealthier individuals to lower-income retirees. 

Rubio’s retirement savings proposal for the private workforce was even more ironic given his rhetoric in the very same speech about Medicare Advantage, a type of Medicare health plan private health insurance companies offer. Sharply criticizing the recent cuts made to the program, Rubio described Medicare Advantage as “a shining success story” that “has encouraged providers to compete for business by tacking on all sorts of value-added services for seniors.” Many 401(k) providers currently servicing the private workforce could argue the same thing.

Andrew Remo is ASPPA’s Congressional Affairs Manager.