New York State moved one step closer to an auto IRA system for private-sector workers this week as the Senate passed a bill to amend the forthcoming program.
On Monday, the Senate approved legislation passed in May by the state assembly that would require businesses to participate in the state’s individual retirement account program and automatically enroll workers, unless the businesses already provide a retirement plan. The versions of the bill are being reconciled in the state legislature before being sent to Gov. Andrew Cuomo for his signature.
Under the bill, businesses in the state that have been operating for at least two years and have at least 10 employees would be required to participate. In 2018, the state passed legislation to establish a voluntary IRA system for the private sector, but it has yet to implement that program.
The state appears to have been prodded into action by New York City’s passage of an auto IRA program. However, the city’s program would be absorbed by the state program — a provision in the city’s legislation requires as much, as long as the state system is similar and automatic.
Pending Cuomo’s approval, New York state’s program would be latest of a handful of auto IRA initiatives in the U.S. Given the size of the state’s population, it could also end up being one of the biggest.
One of the few auto IRA programs that is up and running, California’s CalSavers, has gained 11,000 participating employers, representing 350,000 workers and about $78 million in assets, since it launched statewide in July 2019, according to figures from the state. At the end of June, CalSavers will begin requiring all businesses with at least 50 employees to register, unless they already provide retirement plans.
Other states, including Illinois and Oregon, also have automatic IRA programs for private-sector workers.
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
