President Donald Trump signed H.J. Res 66 into law Thursday, invalidating the Department of Labor’s “safe harbor” regulations on savings arrangements established by states for non-governmental employees.
Rep. Tim Walberg, R-Mich., chairman of the Subcommittee on Health, Employment, Labor and Pensions, who authored the resolution, said after the president’s signing that “this resolution restores important retirement protections that workers have counted on for decades. Retirement security is a difficult challenge facing many Americans.”
The resolution, he continued, closes a regulatory loophole created by the Obama administration that would allow states to automatically enroll private-sector workers into retirement accounts without the consumer protections provided by the Employee Retirement Income Security Act.
Sen. Orrin Hatch, R-Utah, introduced companion legislation S.J. Res. 32. A similar resolution signed into law by President Donald Trump in April stopped city-run plans.
The group shared its thoughts after the Senate followed the House and passed a resolution to undo rules helping municipalities and states set up payroll deduction retirement plans that automatically enroll private-sector workers lacking access to such savings programs.
“There is a retirement crisis brewing in America, because workers do not have enough access to retirement savings programs and because there is no retirement system for low income earners. The rule being repealed was helping the states address that problem,” said Bob Stammers, head of investor education for the CFA Institute, in a statement.