On September 29, 2016, California became the latest state to enact a retirement program for private sector workers. It joins Connecticut (2016), Maryland (2016), New Jersey (2016), Oregon (2015), Washington (2015), Illinois (2015), and Massachusetts (2012) already implementing their own programs. Since 2012, at least 30 states have considered proposals to study or establish state sponsored plans.
On August 25, 2016, the White House and U.S. Department of Labor announced the latest rulemaking initiatives to support state-sponsored retirement savings programs.
- 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).
- Proposed rule to help other political state subdivisions, such as cities, consider similar types of plans. All of the public comments submitted can be viewed here.
- The White House Fact Sheet: Making it Easier to Save for Retirement and news release.
All the latest updates can be found on the DOL EBSA’s new website.
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.
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.
For summary of the issues addressed by DOL in the final rule, the new proposed rule, and the existing Interpretive Bulletin, see Groom Law Group’s August 29, 2016 memo.
CRI’s Executive Director reviews the 2016 Outlook for State Initiatives. Watch the video below!