FOR IMMEDIATE RELEASE
February 8, 2017
Move highlights concerns with new Labor regulation regarding government-run retirement plans
WASHINGTON, D.C. —A Congressional effort to override recent Labor Department regulations that allow states and municipalities to mandate and run retirement plans without some basic protections for private-sector workers is a necessary step to protect savers. Notably, the regulations give these states and municipalities a pass from the stringent obligations of the Employee Retirement Income Security Act (ERISA) which is required of all private-sector employers who offer a workplace plan, a move that could put savers’ nest eggs at risk.
“Savers should have the same protection around their nest egg, no matter where they get it,” said Jill Hoffman, Vice President for Investment Management at the Financial Services Roundtable.
All retirement plans should provide consistent legal protections under ERISA and the Internal Revenue Code. Exempting the states and municipalities from ERISA’s requirements also paves the way for smaller employers to abandon the costs and administrative burdens of complying with ERISA and shift their employees to government-run plans that lack the guardrails and protections of private-sector plans.
To facilitate better access to workplace plans and expand retirement savings opportunities to all employees, FSR supports changes to ERISA that encourage access to affordable professional financial advice, allow for robust financial education, and simplify administrative procedures for employers. FSR also supports the expansion of Multiple Employers Plans (MEPs) to increase access and participation in retirement plans for small businesses and employers.
The Congressional resolutions were introduced today by Representatives Francis Rooney and Tim Walberg. FSR looks forward to working with policymakers on solutions that ensure all retirees are protected and can save for a secure, dignified retirement.
The Financial Services Roundtable represents the largest integrated financial services companies providing banking, insurance, payment and investment products and services to the American consumer. Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO. FSR member companies provide fuel for America’s economic engine, accounting for $92.7 trillion in managed assets, $1.2 trillion in revenue, and 2.3 million jobs. Learn more at FSRoundtable.org.