For Immediate Release
Washington, DC – The ERISA Industry Committee (ERIC) testified before the New York City Council regarding proposed bill Int. 0888-2018, that would establish a state-run retirement savings program for private-sector employees.
ERIC supports proposals and programs run by states and localities designed to promote and facilitate retirement saving by those employed by an employer that does not provide a retirement plan, but has concerns about how the proposed program overlaps and connects with the Employee Retirement Income Security Act of 1974 (ERISA), the federal law that already governs the administration of private-sector retirement plans.
ERIC’s testimony focused on several aspects of the proposed bill that directly conflict with ERISA or place additional burdens on employers already providing retirement plans to their employees. Most important to ERIC members, who all offer ERISA-qualified retirement plans, is for an employer to be automatically exempt from the program if it provides a retirement plan to employees in accordance with ERISA.
“It is extremely important that employers, who already provide a retirement plan in compliance with federal ERISA law, be able to design plans that work effectively and efficiently based on the needs of their workforces and the industries in which they operate. As the Council moves forward, it is imperative the proposal be revised to ensure that no additional burdens are imposed on employers who already providing a qualified retirement plan to employees,” said Aliya Robinson, Senior Vice President, Retirement and Compensation Policy, ERIC. “ERIC welcomes working with the Council to ensure that the program meets its goal of increasing retirement savings access to employees, while not encroaching on ERISA.”
ERIC previously sued the Oregon Retirement Savings Board (ORSB) on ERISA preemption grounds over the employer reporting requirement imposed by Oregon’s state-run mandatory retirement plan, OregonSaves. In its complaint, ERIC argued that ERISA preempts the OregonSaves reporting requirements imposed on employers that already provide an ERISA retirement plan to their Oregon employees. ERIC and the ORSB settled in March 2018.
To read ERIC’s testimony before the New York City Council, click here.