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

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.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.