Labor Secretary Thomas Perez today announced a proposed safeharbor amendment that is expected to bring states around thecountry one step closer to getting into the retirement planadministration business.

Addressing an audience at Ariel Investments in Chicago, Perezsaid the proposed guidance will help retirement plan initiativesat the state level comply with federal law underthe Employee Retirement Income Security Act.

The safe harbor says states that establish a payrolldeduction-based retirement program with an automatic enrollmentdesign feature will not “give rise” to an employee pension benefitplan under ERISA, according to language in the proposal.

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.