President Bush has signed a bill which would affect the lives of average Americans for a long time ahead. The new bill has overhauled the savings and pension rules which would make retirement more secure for millions of Americans and change the way Americans would prepare for their golden years. This law has given seven years to companies to end their traditional pension plans and special provisions to remedy seriously unfunded plans quickly.



As of now there are thirty thousand plans which are estimated to be underfunded by around $450 million and when these plans are not able to meet their obligations, the axe of the burden falls on taxpayers and retirees face the brunt of loss of benefits they had depended on. Under this law employers would be able to automatically enroll their employees in 401(k) plans and increase their contributions over a period of time. It is expected that with this law savings of Americans would get boosted from $10 billion to $15 a year.



The law also requires the employers to provide employees with more information about the pension plans and create new retirement savings options for workers such as Roth 401(k)



It is expected that this law would make life more secure for the Americans.