Lawsuit filed against first state auto-IRA program

The ERISA Industry Committee is seeking an injunction against the program's new reporting requirements

Oct 13, 2017 @ 11:47 am

By Hazel Bradford

The ERISA Industry Committee in Washington is seeking an injunction against new reporting requirements from the Oregon Retirement Savings Board in a complaint filed in U.S. District Court in Salem, Ore.

The national association advocating for employer benefits issues argues in the complaint filed Thursday that OregonSaves, the state-run mandatory retirement plan for private-sector employees, has reporting requirements that are pre-empted by the Employee Retirement Income Security Act of 1974.

(More: Status of state retirement programs)

Oregon state law requires large employers who already provide a retirement plan to formally request an exemption from OregonSaves and file paperwork every three years to qualify for the exemption. The first reporting deadline is Nov. 15, as the program moves from pilot phase to full implementation.

Oregon's automatic Roth individual retirement account program for employers not offering retirement plans launched this year with two pilot programs. By next year, employers with 50 or more workers will be enrolled, and all workplaces will be in three years. By its 10th anniversary, it is projected to manage $5 billion in retirement savings for 500,000 participants.

"We fully support increasing access to retirement plans for individuals who are not provided a plan through their employer. However, we just don't support when they infringe on other ERISA plans," said Will Hansen, ERIC's senior vice president of retirement and compensation policy, in an interview.

Hazel Bradford is a reporter for Pensions&Investments, a sister publication of InvestmentNews.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Where in the U.S. are RIAs growing the fastest?

InvestmentNews' deputy editor Robert Hordt talks to senior columnist Jeff Benjamin about his report on how registered investment advisers are faring in different regions of the country.

Latest news & opinion

Midwestern magic? RIA assets soared nearly 30% there last year

Theories for what's driving the growth spurt abound, but it surpassed all other regions of the country.

8 apps advisers love for getting stuff done

We reached out to advisers to find out which apps they are using to run their business more efficiently.

10 tax moves to squeeze in before the year ends

Here are some tax moves clients can still make before year-end.

UBS buckles under uproar from brokers over non-solicit agreements

The firm's shift in policy this week puts spotlight on the fight over who controls the client.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print