State-Based Retirement Programs Pose Hazards for Employers, Workers
More Private-Sector Tools Would Expand Access to Programs
Washington, DC, November 16, 2015—ICI President and CEO Paul Schott
Stevens issued the following statement in response to proposed regulations
issued by the Department of Labor today governing state-based retirement
programs:
gWe are deeply concerned that the Obama
Administration is pursuing policies that could fragment and undermine our
nationfs voluntary retirement system for private-sector workers. The
contemplated state programs pose serious hazards for employers and workers, who
could be forced to turn their savings over to the same state agencies that have
created a $1.4 trillion shortfall in public-sector workersf pensions.
gWe certainly share the goal of extending access
to retirement savings plans to more workers. But to be successful, that access
should be provided through national legislation that builds on the current
voluntary system, not through a confusing patchwork of state programs, and with
the cooperation—not coercion—of employers who best know the demographics and
needs of their workers.
gRather than turning to state agencies to promote
retirement savings coverage, the Administration would better serve retirement
savers if it would give the private sector the tools it needs—including some of
the same tools that it proposes granting to state governments—to make coverage
more available and affordable for small employers.h