April 17, 2017

President Signs Joint Resolution Nullifying DOL "Safe Harbor" Rule for Government-Run IRAs

President Donald J. Trump signed H.J. Res. 67, a joint resolution nullifying a Department of Labor ("DOL") rule that created a "safe harbor" from ERISA regulations for local government-run IRAs established for private-sector employees without access to retirement plans.

The rule had set forth requirements under which municipalities could offer payroll deduction savings programs for private-sector employees without establishing "employee pension benefit plans" or "pension plans" under ERISA. Previously, the White House issued a statement expressing skepticism about the rule because it appeared to allow a "new type of state-based retirement plan that would lack important Federal protections" and that "would give a competitive advantage to these public plans."

Prior to the passage of H.J. Res. 67, SIFMA issued a statement of support for the resolution.

H.J. Res. 66, which is a related resolution for savings arrangements established by states for private-sector employees, has yet to be considered by the Senate.