The New York City Council has passed a bill mandating an auto-enrollment individual retirement account program for employees of private-sector firms that do not offer a retirement plan and have five or more workers.
The bill takes effect in 90 days, but the city retirement security board, which the City Council created in companion legislation, has up to two years to implement the program.
The default employee contribution rate under the new plan would be 5%, up to the annual IRA maximum contribution of $6,000 (or $7,000 for those who are 50 or older). But employees can adjust that contribution rate higher or lower, or opt out of the auto IRA at any time. The plan would be portable and employers do not have to contribute on behalf of employees.
Out of roughly 3.5 million private-sector workers in New York City, only 41% have access to an employer-sponsored retirement plan, lower than the national average (53%), and down from 49% a decade ago, the city said in a release, noting that 40% of New Yorkers near retirement age have less than $10,000 saved for retirement.
States have been at the forefront of establishing auto-IRA programs, with programs currently up and running in states including California, Illinois and Oregon. But until New York's move, Seattle was the only city to have set up an auto-IRA.
Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.
Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.
It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.
Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.
Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
