Washington State Governor Signs Bill Creating Retirement Plan Marketplace

Legislation recently signed into law by Washington Governor Jay Inslee creates a small business retirement marketplace in the state that will focus on small employers and promote retirement savings by workers.
 
Unlike legislation currently being considered in several other states, SB 5826 relies on private sector retirement products rather than setting up a state-run retirement plan. Participation in the marketplace is completely voluntary for employers and employees. All private-sector financial services firms that meet the conditions set forth in the law will be eligible to offer plans through the marketplace.
 
The law expressly calls for the marketplace to include life insurance products designed for retirement purposes. It provides that agents and advisers who help their clients enroll in marketplace plans should receive market-based commissions for their services.
 
NAIFA-Washington worked with lawmakers and other organizations to move SB 5826 to passage.
 
“Governor Inslee and the Washington state legislature are to be commended for recognizing that the private market currently offers a wide variety of comprehensive retirement planning solutions for persons in all walks of life,” said NAIFA President Juli McNeely. “Some other states seem intent on competing with the private market by creating state-run plans and requiring employers to participate. Washington has gotten it right, with government playing a crucial role in educating consumers about the need to save for retirement and promoting retirement savings options, but leaving the actual design, implementation and administration of plans to the private sector.”

NAIFA has opposed efforts in other states to create state-run retirement plans. Such plans could put taxpayers’ dollars at risk and would not address the fundamental problems of people who lack the resources or will to save for retirement or who are unaware of private-market options. Existing, employer-based and private-sector retirement plans already provide successful and cost-effective means for those who have the resources to save for retirement.
  • Posted June 2, 2015 IN


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