When Congress returns to Washington from its week-long recess, the fate of a Labor Department regulation that facilitates state-administered retirement plans for the private sector will hang in the balance.
On February 15, the House of Representatives passed a resolution under the Congressional Review Act, largely along party lines, that would block a new safe harbor allowing states to mandate enrollment in state-administered IRAs for workers that don’t have access to retirement plans through their employers.
Under the safe harbor, states can require enrollment in IRAs, so long as workers are able to opt-out of the plans. Employers are not allowed to contribute to the accounts, and their role is limited to facilitating payroll deductions. The safe harbor does create an option for states to administer multiple employer plans, which would allow employers the option of contributing to savings.
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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.
