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Old 08-26-2016, 04:06 PM
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Mary Pat Campbell
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
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U.S. Nudges States to Help Private-Sector Workers Save for Retirement
Obama administration wants Americans to build nest eggs to supplement social security

WASHINGTON—The Obama administration on Thursday finalized a new regulation to encourage states to set up retirement savings plans with automatic enrollment features for private-sector employees, part of its push to promote Americans to build their own nest eggs to supplement social security.

The rule, announced by Labor Secretary Thomas Perez and the White House, gives states a road map for establishing the retirement plans.

Several states already have passed legislation to create their own vehicles to enroll workers who don’t have access to pension or retirement savings plans in the workplace. The California State Assembly on Thursday cleared a plan that could potentially enroll some 6.8 million people. Maryland and Connecticut took action in recent months.

Opponents have said such plans crowd out competition from the private sector. Congress has blocked the Obama administration’s attempts to create similar plans at the federal level.

The Labor Department also unveiled a proposal on Thursday to enable large cities—defined as those with populations larger than Wyoming, the least populous state with 586,000 people in 2015—to create similar plans.


The Treasury Department last year launched a basic retirement savings program called “myRA” for middle- and lower-income workers. The Labor Department, meanwhile, has rolled out a rule to impose stricter standards on financial advisers working on retirement plans, a step aimed at lowering fees and improving returns for savers and which is opposed fiercely by the financial industry.


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