National Association of Insurance and Financial Advisors

NAIFA Advocacy at Work: Senate Passes Legislation Requiring State-Run Retirement Plans to Comply With ERISA

NAIFA’s advocacy efforts paid off today when the U.S. Senate passed H.J. Res. 66, a bill under the Congressional Review Act that rescinds the Department of Labor's exemption of state-run retirement plans from worker protections under the Employee Retirement Income Security Act (ERISA).

NAIFA sent letters to all 535 lawmakers and urged members to call and email their senators to support the bill. NAIFA key contacts also made personal phone calls to important congressional offices, while NAIFA representatives met with members of Congress and their staff on the issue.
The legislation ensures that state-run retirement plans, which are in process or under consideration in several states, afford participating workers with the same protections under ERISA as private-market plans offered by advisors.
“There is already a robust private market providing affordable retirement plan options for employers and individuals,” said NAIFA President Paul Dougherty. “It makes little sense for states and cities to use scarce resources to establish plans to compete with the private market. It would be patently unfair to give these government-run plans a competitive advantage by waiving regulatory restrictions. But this is really a win for retirement savers, because now all retirement plans– including government-run plans will have to abide by consumers protection rules.”
“NAIFA strongly supports efforts to promote retirement security for all American workers and has encouraged innovative improvements to our voluntary retirement system,” Dougherty added. “We look forward to working with legislators at federal and state levels on ways to promote employer-sponsored and private sector retirement savings plans.”
  • Posted May 3, 2017 IN

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