Labor Secretary Thomas Perez today announced a proposed safe harbor amendment that is expected to bring states around the country one step closer to getting into the retirement plan administration business.
Addressing an audience at Ariel Investments in Chicago, Perez said the proposed guidance will help retirement plan initiatives at the state level comply with federal law under the Employee Retirement Income Security Act.
The safe harbor says states that establish a payroll deduction-based retirement program with an automatic enrollment design feature will not “give rise” to an employee pension benefit plan under ERISA, according to language in the proposal.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
