Congress considers blocking California retirement savings plan
SACRAMENTO — A state program to help millions of Californians save for retirement could hit a roadblock this week if the U.S. House of Representatives votes to keep states from setting up individual plans for those who don’t have access to 401(k)-type benefits through their jobs.
With the GOP controlling the White House and Congress, some Republicans in the House are trying to scuttle systems established by California and at least four other states — Oregon, Maryland, Illinois and Connecticut — that automatically enroll workers without retirement benefits in payroll deduction plans.
Behind the move is the U.S. Chamber of Commerce, which has argued that state plans will lead more employers to drop their more robust 401(k) benefits because they are more costly and cumbersome for businesses to manage. An erosion of private-sector retirement plans, they say, will only hurt workers.
But the rush to kill state programs years in the making faces fierce opposition from the AARP, small business associations and labor unions. With research showing some 40 million American households have no money in retirement accounts, they say, Congress should be addressing the crisis, not undermining states’ attempts to fill the void.
Read more: http://www.eastbaytimes.com/2017/02/13/congress-considers-blocking-california-retirement-savings-plan/
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