NAIFA Responds to President Obama’s Call for State-Run Retirement Plans

President Barak Obama said this, in his July 13 remarks at the White House Conference on Aging:

“I’ve called on the Department of Labor and Tom Perez to propose a set of rules by the end of the year to provide a clear path forward for states to create retirement savings programs.”
NAIFA strongly supports President Obama’s stated goal of encouraging more Americans to save for retirement. However, NAIFA believes that the role of the government should be confined to educating workers and providing means for them to participate in private-sector plans. Moreover, participants enrolled in state-run plans would lose the ERISA protections afforded all other retirement savers.
“Many states, and now apparently the White House, are approaching this problem the wrong way,” said NAIFA President Juli McNeely. “There are a wide variety of affordable, well-run retirement-savings plans already available in the marketplace for workers at almost every income level. There is no need for governments to get in the business of running retirement plans.
“The problem is not lack of access – it is lack of participation. NAIFA supports efforts by the federal and state governments to encourage retirement saving and make it easier for workers to enroll in private plans.”
A new law in Washington state creates a small business retirement marketplace that will focus on small employers and promote retirement savings by workers.
Unlike legislation currently being considered in several other states, the law 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 state officials to promote the legislation, and NAIFA supports other states taking a similar approach.
  • Posted July 14, 2015 IN
  • Comments (2)

ed hulse
Great article and I completely agree! Save for retirement and use your insurance education and products to help!
7/15/2015 6:07:41 PM
Dan Buck
This is another bad idea proposed by the current administration. It is nothing more than a veiled attempt to amass more private sector funds that can be embezzled by an overreaching federal government. Anybody heard that the Social Security Trust Fund has nothing in it?! I'm not in favor of the Washington State plan that has been outlined, either. Why do we need a law with requirements and regulations for participation in retirement planning and saving that simply mirrors what is already readily available in the private sector? Bureaucrats, with their insatiable appetite for rule making will ruin any part of it that could be beneficial, but be sure it will cost the American taxpayers plenty to keep it alive! We need less government and no more overreaching proposals from the Obama regime.
7/15/2015 3:21:40 PM