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.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
