States should have flexibility in crafting workplace-based retirement plans: GAO

States should have flexibility in crafting workplace-based retirement plans: GAO
Report looks at estimates of workplace retirement savings program coverage, strategies used by states and other countries to expand coverage among private-sector workers and challenges that states could face.
SEP 23, 2015
Congress should consider giving states some flexibility in designing programs to expand private-sector access to retirement savings plans without worrying about ERISA pre-emption, according to a report from the Government Accountability Office released Tuesday. The report looks at recent estimates of workplace retirement savings program coverage, strategies used by states and other countries to expand coverage among private-sector workers and challenges that states could face under existing federal law and regulations. Federal agencies that enforce those laws and regulations “generally agreed with GAO's recommendations,” GAO said. The Labor Department drafted proposed rules Sept. 3 to guide states as they set up workplace-based retirement programs. (More: Obama encourages statewide retirement plans) The report, requested by Sen. Patty Murray, D-Wash., the ranking member of the Senate Health, Education, Labor and Pensions Committee, is the first retirement access study to match the Census Bureau's Survey of Income and Program Participation and confidential IRS data. It found that nearly half of private-sector workers do not have a retirement plan through their employer. (More: The biggest obstacle for states looking to launch auto-IRAs) “Expanding access to workplace retirement plans is a key step in helping more workers grow their savings and building our economy from the middle out, not the top down,” Ms. Murray said in an e-mailed statement. Hazel Bradford is a reporter at sister publication Pensions & Investments.

Latest News

Clients expect to know if you use AI, but don’t realise that their portfolios are likely exposed
Clients expect to know if you use AI, but don’t realise that their portfolios are likely exposed

Janus Henderson Investors research reveals demand for transparency, but lack of awareness of AI’s prevalence in the corporate world.

Retirement dream looking more like a luxury as cost-of-living squeezes savings
Retirement dream looking more like a luxury as cost-of-living squeezes savings

New research reveals rising expenses, forced early exits, and a widening gap between how long people live and how long their money lasts.

Advisor moves: LPL, Raymond James, Brighton Jones raid the talent pool
Advisor moves: LPL, Raymond James, Brighton Jones raid the talent pool

Firms continue their quest to attract and retain the best advisor teams.

Most advisors say AI portfolio construction is worth $500 a month
Most advisors say AI portfolio construction is worth $500 a month

A survey from TacticalMind AI found 69% of advisors say a high-quality AI platform that makes investment recommendations and constructs portfolios is worth $500 monthly, while research-only tools are valued closer to $250.

CAIS embeds Claude AI into advisor workflows for alternatives intelligence
CAIS embeds Claude AI into advisor workflows for alternatives intelligence

The alts tech provider's latest integration lets advisors query fund data and surface portfolio insights without leaving their primary workspace.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline