Two Rules on Retirement Savings Plans

These two rules support state efforts to provide retirement programs to private sector workers.

These rules have been repealed.

H.J. Res. 67 is sponsored by U.S. Rep. Francis Rooney (R-Fl.). S.J. Res. 33 is sponsored by U.S. Sen. Orrin Hatch (R-Utah).
H.J. Res. 66 is sponsored by U.S. Rep. Tim Walberg (R-Mich.). S.J. Res. 32 is sponsored by U.S. Sen. Orrin Hatch (R-Utah).

OVERVIEW

This U.S. Department of Labor rules support states providing retirement programs to private sector workers. Thirty states and municipalities are in the process of implementing or exploring the establishment of state-facilitated, private-sector retirement programs. Eight states have passed legislation to allow individuals to save their own earnings for retirement (no employer funds are involved as these are not defined benefit plans).

Currently, 40 million Americans do not have any retirement savings set aside to protect their future financial security, and 30 million of those lack access to a retirement savings plan through their employer. Overturning these rules would jeopardize the progress that has been made in the states that have already enacted plans to provide state retirement options and could have a chilling effect on the states considering similar legislation.

IMPACTS

In California alone, the Secure Choice program that was voted into law last year with bipartisan support would help connect 7.5 million workers—half of whom are Latino—to a retirement savings account.

The California Secure Choice retirement program would help connect individuals like this client of an NCLR Affiliate in Los Angeles with options throughout her working years so that when she reached retirement age, she would be economically secure: Ms. Alvarez is a 71-year-old woman working as a custodian. She works every day to cover her rent and other living expenses. When asked about retirement, she was a bit confused on the notion of not working and understanding who would pay for her to live. Ms. Alvarez has no knowledge about retirement plans or savings accounts that can help her when she reaches an age where she can no longer work.

OPPONENTS

On February 15, 2017, the U.S. House of Representatives passed H.J. Res. 66 by a vote of 231-193 and H.J. Res. 67 by a vote of 234-191.

U.S. Sen. Orrin Hatch (R-Utah), Chairman of the Senate Finance Committee, is the lead sponsor of S.J. Res. 32 and S.J Res. 33. Both resolutions are co-sponsored by U.S. Sens. James Inhofe (R-Okla.), Johnny Isakson (R-Ga.), Mitch McConnell (R-Ky.), Lisa Murkowski (R-Alaska), David Perdue (R-Ga.), Pat Roberts (R-Kan.), Tim Scott (R-S.C.), John Cornyn (R-Texas) and James Risch (R-Idaho).

TAKE ACTION

Tell your Senator to support state retirement savings programs!
This action is hosted by the AARP.

We must fight to protect state-based retirement plans!
This action is hosted by the SEIU.

CONTACTS

Marisabel Torres, Nation Council of La Raza, mtorres@nclr.org, (571) 276-5031

Lindsay Daniels, Nation Council of La Raza, ldaniels@nclr.org, (202) 776-1704

Blanca Castro, AARP California, (916) 556-3021

NEWS AND RESOURCES

Trump Just Killed a Groundbreaking New Program Designed to Help Low Wage Workers
Mic: May 18, 2017

California Leaders Vow to Continue State-Run Retirement Plan
Bakersfield Now: May 18, 2017

States Press on With Retirement Programs, Despite Losing Regulatory Cover
The Wall Street Journal: May 8, 2017

Republicans Just Repealed an Obama Rule That Helped Workers Save for Retirement
The Huffington Post: May 3, 2017

FACEBOOK VIDEO: Schumer Speaks Out Against the Retirement Savings Plan CRA
U.S. Sen. Chuck Schumer (D-N.Y.): May 3, 2017

Wall Street vs. Workers, As Financial Industry Lobbies to Repeal Low-Cost Retirement Plans
International Business Times: May 2, 2017

Congress Shouldn’t Make It Harder for Small Businesses to Offer Retirement Plans
The Hill: May 2, 2017

What’s Your Excuse for Opposing State Retirement Initiatives, Senator?
Economic Policy Institute: May 2, 2017

Trump Attacks Retirement Accounts for People Who Don’t Have Them
ThinkProgress: April 14, 2017

GOP, Don’t Stop States From Giving Families a Secure Retirement
The Hill: April 14, 2017

Republicans Launch Their Crusade for Elder Poverty with Repeal of Automatic Retirement Accounts
DailyKos: April 14, 2017

Trump Kills an Obama Regulation Meant to Help Workers Save for Retirement
The Huffington Post: April 13, 2017

Democrats Try to Save City Retirement Plan Rule
BenefitsPro: April 11, 2017

Democrats Ask Trump to Veto Measure Repealing City Retirement Plan Rule
KFGO: April 6, 2017

Colorado Must Step Up as Trump and Congress Attack Financial Protections
The Denver Post: March 30, 2017

Let States Encourage Retirement Savings
Wisconsin State Journal: March 25, 2017

Republicans in Congress Try to Sabotage State-Sponsored Retirement Savings Plans — Before They Begin
NW Labor Press: March 16, 2017

Retirement Is Already Hard. Why Make Things Worse?
SEIU: March 16, 2017

Proposed Congressional Repeal of Federal Regulations Supporting State Auto-IRAs Threatens Retirement Security of 13 Million Workers in Five States
UC Berkeley Labor Center: February 15, 2017

Facts and Fallacy about State-Facilitated Retirement Savings Plans
AARP: February 1, 2017