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

NASAA moves to let state RIAs use client testimonials, aligning with SEC rule
NASAA moves to let state RIAs use client testimonials, aligning with SEC rule

A new proposal could end the ban on promoting client reviews in states like California and Connecticut, giving state-registered advisors a level playing field with their SEC-registered peers.

UBS sees a net loss of 111 financial advisors in the Americas during the second quarter
UBS sees a net loss of 111 financial advisors in the Americas during the second quarter

Some in the industry say that more UBS financial advisors this year will be heading for the exits.

JPMorgan reopens fight with fintechs, crypto over fees for customer data
JPMorgan reopens fight with fintechs, crypto over fees for customer data

The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.

The average retiree is facing $173K in health care costs, Fidelity says
The average retiree is facing $173K in health care costs, Fidelity says

Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.

Advisor moves: NY-based Coastline wealth adds three teams with over $430M in assets
Advisor moves: NY-based Coastline wealth adds three teams with over $430M in assets

Raymond James also lured another ex-Edward Jones advisor in South Carolina, while LPL welcomed a mother-and-son team from Edward Jones and Thrivent.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

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.