Consumer Agenda for Retirement Security

Initiative # 3: Improve retirement savings plans 

J. Allow caregivers on family and medical leave to contribute to their 401(k)s.

Length of service determines when an employee can join a plan, when the individual becomes vested, and when benefits may be paid.  On average, women have fewer years in the labor force than men, primarily because women are more likely than men to take time out under the Family Medical Leave Act for child-rearing and other care-giving responsibilities.  This can impede women’s ability to satisfy plan vesting and eligibility requirements.  Workers who take time off under the FMLA should be allowed to count that time toward meeting vesting and service requirements.  The availability of family leave and the mandate to credit service during that leave would better suit care-giving needs.  In addition, plans should allow workers to purchase benefit accruals lost during the time away from employment. 

Learn more about the other initiatives in the Consumer Agenda for Retirement Security.

Initiative 1: Promote a more adequate and secure private retirement income system.
Initiative 2: Empower workers to promote their own retirement security.
Initiative 3: Improve retirement savings plans.
Initiative 4: Improve traditional and hybrid pension plans.
Initiative 5: Make retirement plans fairer for workers and their spouses.

Print the Consumer Agenda for Retirement Security [PDF].