DOL ADMINISTRATIVE POLICIES RELATED TO PUBLICLY SPONSORED PAYROLL-DEDUCTION IRAs
AND ERISA-COVERED PLANS
On November 18, 2015, Interpretive Bulletin 2015-02 “regarding certain state laws designed to expand the retirement savings options available to their private sector workers through ERISA-covered retirement plans” was issued and effective immediately.
On August 30, 2016, the U.S. Department of Labor published a final rule for savings arrangements established by states for non-governmental employees.
- Final rule for State Auto-IRA Programs describing a safe-harbor for state laws that require employers to facilitate enrollment in state-administered payroll deduction individual retirement accounts (IRAs).
- The White House Fact Sheet: Making it Easier to Save for Retirement and news release.
On December 20, 2016, the U.S. Department of Labor published a final rule for qualified state political subdivisions (e.g., cities, counties) that establish payroll deduction IRA savings program for workers who do not have access to workplace savings arrangements. This “city” rulemaking amends the final rule for state-sponsored retirement savings.
- Final rule for savings arrangements established by qualified state political subdivisions for non-governmental employees.
- DOL’s Fact Sheet for City or County Savings Programs for Non-Governmental Employees.
- All of the public comments submitted to DOL on this rulemaking can be viewed here. On September 29, 2016, the CRI submitted comments to the U.S. Department of Labor regarding its proposed rule for savings arrangements established by state political subdivisions for non-governmental employees. Click here to view the letter.
For a summary of the issues addressed by DOL in the final state rule, the proposed “city” rule, and the Interpretive Bulletin, see Groom Law Group’s August 29, 2016 memo.
On January 19, 2017, the U.S. Department of the Treasury issued a final rule governing retirement savings bonds. In this final rule, Treasury offers nonmarketable, electronic retirement savings bonds for certain retirement savings programs established by states or certain of their political subdivisions.
On April 13, 2017, House Joint Resolution 67 became law. This resolution was introduced under the Congressional Review Act, which provides Congress a window of 60 legislative days to halt regulations. This resolution nullifies the final rule for savings arrangements established by qualified state political subdivisions for non-governmental employees (the “city” rule).
All the latest updates are on the DOL EBSA’s website.
View the presentations below:
- Summary of the Employee Retirement Income Security Act. Click here to learn more.
- CRI Policy Brief – State Initiatives to Expand the Availability and Effectiveness of Private Sector Retirement Plans: How Federal Laws Apply to Plan Design Options. Click here to learn more.
- ERISA Plans: What Is Your Fiduciary Responsibility? Click here to learn more.
U.S. Department of Labor
- Retirement Plans and ERISA FAQs. Click here to learn more.
- U.S. Department of Labor Marks ERISA’s 40th Anniversary. Click here to learn more.
- See DOL’s 12/15/2014 response to the Treasury Department regarding ERISA applicability to the President’s myRA program. Click here to learn more.
- Some recent DOL ERISA Advisory Council reports:
- “Participant Plan Transfers and Account Consolidation for the Advancement of Lifetime Plan Participation” (November 2016)
- “Model Notices and Plan Sponsor Education on Lifetime Plan Participation” (November 2015)
- “Model Notices and Disclosures for Pension Risk Transfers” (November 2015):
- “Issues and Considerations Surrounding Facilitating Lifetime Plan Participation” (November 2014)
- “Outsourcing Employee Benefit Plan Services” (November 2014)