Woodstock Institute strongly supports creating a safe harbor for employers that are mandated to participate in state-established and administered automatic enrollment payroll deduction retirement savings programs, and we encourage the DOL to expand the safe harbor to employers that voluntarily participate in those programs.
U.S. Department of Labor (DOL) Secretary Tom Perez announced in Chicago on November 16 a new proposed rule that establishes a safe harbor for state-established and administered programs like Secure Choice, so that employers who are required to participate will not be burdened by federal ERISA laws that apply to employer-sponsored retirement programs. This rule will be critically important in allowing states to implement these programs.
This comment letter responds to the U.S. Department of Labor’s proposed rule addressing the definition of fiduciary and the conflicts of interest in the retirement savings market. Woodstock Institute supports the DOL’s proposed rule to clarify that financial advisers and their firms must provide advice and guidance that is in the best interest of the investor, and to avoid conflicts of interest. The letter highlights the significant changes that have taken place in the financial market since the rule was first written in 1975.
But now, the small-business backbone of the economy is slowly rising to the occasion, often with the assistance of state governments.
Here's one such example from the state of Washington: The Small Business Retirement Marketplace, signed into law last week by Washington Governor Jay Inslee, will provide an estimated 1.5 million residents in the state with access to workplace-based retirement accounts.