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DOL Secretary Describes Upcoming Regs Governing State-Sponsored Retirement Plans for Private Employers

"[As] states explore their options, they are going to have questions for the [DOL] about how they can avoid running afoul of [ERISA]. At the president's direction, we have developed a proposed rule, which has been sent to [OMB] for their review. We can't get into the specifics of the proposal until it is published for public comment, but we can say that it will set forth circumstances in which states can administer auto-enrollment IRA savings programs, funded with payroll deductions, without requiring employers to create ERISA-covered plans. We also plan to issue guidance at the same time about how states might pursue an alternative approach that would promote the creation of ERISA-covered plans, which would be fully subject to ERISA's rights and protections."

DOL Describes Retirement Plan Expansion Proposals, Including Open MEPs

"[The administration is] proposing legislation to allow multiple unrelated employers to come together and form pooled 401(k)s, resulting in lower costs and less burden for each employer. Through these 'open multiple employer plans' (open MEPs), more small businesses should be able to offer cost-effective plans to their employees, while certain nonprofits and other intermediaries could create pooled plans for contractors and other self-employed workers. As an added benefit, employees moving between employers participating in the same open MEP can continue contributing to the same plan -- and receiving employer contributions -- even if they switch jobs. And independent contractors participating in a pooled plan using that structure can contribute no matter which client is paying them."

From EBSA Secretary Phyllis Borzi: Your Conflicts of Interest Questions Answered

"Earlier this year, we announced new protections to ensure that Americans who are saving for retirement will have access to financial advice in their best interest.... One of the first and most important efforts on this front is the publication of FAQs based on the input we've received from the financial services industry and others. These questions are an important part of the regulatory process as they allow the department to clarify important parts of the rule, and head off misunderstandings that could lead to bad results for retirement savers, or financial services professionals.... Our initial focus has been, and remains, broad compliance with the rule."

Facilitating State Efforts to Help Workers Save for Retirement

"Eight states -- California, Connecticut, Illinois, Maryland, New Jersey, Oregon, Massachusetts, and Washington -- have already passed laws creating their own retirement savings arrangements.... Today's rule will clarify the status of existing state efforts, and will enable more states to create their own programs. The Department is also publishing a proposed rule that would allow some larger cities to establish their own retirement savings programs."

Clearing a Path for State-Run Retirement Plans

"Many states have been active in this space, creating safe and secure savings opportunities for their workers.... But states have also expressed concern about a lack of clarity as to whether their efforts would be preempted or nullified by [ERISA]. Although the federal courts, not the [DOL], are the ultimate arbiter on that question, the department can try to help reduce the risk of litigation challenges to state retirement savings initiatives. The forthcoming guidance will safeguard worker retirement savings and offer pathways for states to adopt retirement savings programs that are consistent with federal law."

Record Share of Private Industry Workers Have Paid Sick Leave

"Over the last year, the share of private industry workers with access to at least one day of paid sick leave increased from 61 percent to 64 percent, the highest on record. There has been a total increase of 7 percentage points over the last decade.... Further, the increase between 2015 and 2016 was almost entirely due to an increase in access among workers in low-wage occupations, that is, workers in occupations with average wages in the bottom 25 percent."

Winning Back Pay and Benefits for Workers

[DOL] has recovered nearly $8 million worth of earnings and benefits to more than 2,000 employees whose employer failed to make payroll for their last two and half weeks of employment.... In addition to failing to pay workers, the company did not remit employee contributions to their 401(k) plan.

ESOP 101: Tips for Business Owners

"Since fiscal year 2010, the department has recovered more than $241 million for ESOP violations, most of which involved improper valuations ... The good news is that these errors are avoidable.... Choose carefully.... Ensure accurate data.... Check and double-check."

Helping Small Business Owners Start Retirement Plans

"During America Saves Week, [DOL wants] to help small business owners set up retirement plans -- for your own future financial security as well as that of your employees. It's easier than you think to get started. It just takes a few simple steps: [1] Explore your options ... [2] Assess your needs ... [3] Choose a plan and start saving."

Facilitating State-Level Action to Support a Secure Retirement

"[In] every budget since taking office, the President has proposed to automatically enroll in an IRA approximately 30 million employees without access to a workplace retirement savings plan.... [I]ndividual states have moved ahead ... But concerns that such programs may run afoul of federal pension law have hindered efforts at the state level. The rule that the [DOL] is proposing ... gives states the best possible path forward consistent with federal law. It's important to note that we care much more about states creating safe and secure savings opportunities than we do about exactly what the programs look like. We know that there is no one-size-fits-all approach to this, and that good ideas are going to spawn even better ones."