Labor Department gets state-based auto-IRA rule plans together

Once approved by the Office of Management and Budget, a proposed rule is expected to be issued by the end of the year.
AUG 19, 2015
Proposed rules for states to set up auto-enrollment IRA savings programs for private-sector employees were submitted for interagency review by the Labor Department on Wednesday. Plan contributions would come from payroll deductions but employers would not be subject to the Employee Retirement Income Security Act. Once approved by the Office of Management and Budget, a proposed rule is expected to be issued by the end of the year. (More: The biggest obstacle for states looking to launch auto-IRAs) DOL officials are also working on separate guidance to help states create retirement plans that would be covered, but not pre-empted, by ERISA, which the DOL regulates. That timing remains unclear. “The reforms happening at the state level have largely flown under the radar for policymakers in D.C. until recently. But now, it is clear that the White House and the department are making it a priority to help the states, and they are trying to act on an expedited schedule,” said attorney Michael Kreps, a principal with Groom Law Group in Washington and former top aide on the Senate Committee on Health, Education, Labor and Pensions. “DOL's working with states is likely its most significant contribution to retirement security in this administration. The millions without any savings might be able to see retirement as golden years instead of a black hole," said Joshua Gotbaum, a guest scholar in economic studies at the Brookings Institution. Hazel Bradford is a reporter at sister publication Pensions & Investments.

Latest News

Barred advisor forged wife’s signature on life insurance contracts, according to FINRA
Barred advisor forged wife’s signature on life insurance contracts, according to FINRA

Thrivent Investment Management Inc. in May fired Nicholas Hale, according to his BrokerCheck profile.

Raymond James lands $18.7B Synovus team as LPL adds UBS breakaways
Raymond James lands $18.7B Synovus team as LPL adds UBS breakaways

About 70 bank and credit union advisors move to the Raymond James platform, while a $480M New Jersey team goes independent with LPL

Tax-aware investing should expand client choices, not constrain them 
Tax-aware investing should expand client choices, not constrain them 

The best tax plan asks not only how much a client could save, but what they would have to give up to save it. 

Merrill veteran Jonathan Stogsdill joins Trinity Wealth Advisors in St. Louis
Merrill veteran Jonathan Stogsdill joins Trinity Wealth Advisors in St. Louis

A 20-year financial services veteran brings values-driven planning expertise to the St. Louis-based RIA.

SEC enforcement against public companies hits record low under Atkins
SEC enforcement against public companies hits record low under Atkins

New research shows a 71% plunge in actions in fiscal year 2026, with total settlements the lowest since the database began.

SPONSORED Best Practices for Engaging Women Around Alternatives

Growing wealth, evolving priorities, and untapped opportunities are reshaping how women approach long-term investing.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.