Recent ERISA Regulatory Actions Related to State-Sponsored Retirement Programs
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.
- 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).
On May 17, 2017, House Joint Resolution 66 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 states for non-governmental employees (the “state” rule).
All the latest updates are on the DOL EBSA’s website.
DOL Auto-IRA Notice of Proposed Rulemaking (NPRM) Public Comments
The comment period for the DOL NPRM creating a safe harbor for state laws that require employers to facilitate enrollment in state-administered payroll deduction individual retirement accounts (IRAs) closed on January 19, 2016. All of the public comments submitted can be viewed here.
- Auto-IRA Notice of Proposed Rulemaking “describing a safe-harbor for state laws that require employers to facilitate enrollment in state-administered payroll deduction individual retirement accounts (IRAs). Under the terms of the safe-harbor, state programs that mandate auto-enrollment in IRAs in accordance with the safe-harbor would not be treated as ERISA-covered plans.”
- 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.” This bulletin was effective on November 18, 2015.
- DOL’s Summary Fact Sheet: State Savings Programs for Non-Government Employees
On January 19, 2016, the CRI submitted comments to the U.S. Department of Labor regarding its proposed rule for state retirement savings programs for private sector workers. Click here to view the letter.
View the presentations below: