Tag Archives: Lawrence Davidson

U.S. Department of Labor Finalizes Regulations Authorizing States to Establish Retirement Savings Programs

Blog post by Lawrence I. Davidson

On August 25, 2016, the U.S. Department of Labor (DOL) released its Final Rule that will facilitate state legislatures in establishing employee retirement savings programs that are ERISA compliant.  Currently, roughly one-third of all workers do not have an opportunity to save for retirement through retirement savings accounts offered by their employers.  To date, eight states, including Illinois and California, have already passed legislation which creates retirement savings account programs for employees.  While the specific rules of these employee retirement savings programs vary for each state, all of them have the purpose of encouraging residents of their State to save for retirement.  Often this is accomplished through a state “auto-IRA” law which requires employers that do not offer workplace retirement savings programs to automatically enroll their employees in payroll deduction IRAs administered by the state.  Continue reading U.S. Department of Labor Finalizes Regulations Authorizing States to Establish Retirement Savings Programs