Before Taking Overseas Trip, Trump Delivered A Devastating Blow To Retirement Savers
President Donald Trump and his Republican allies have delivered another blow to hard-working Americans by implementing a law that will make it harder for workers without 401(k) plans to save for retirement.
Following lobbying by some Wall Street interests, the GOP-led House adopted a resolution nullifying the regulation in February, and the Senate followed suit earlier this month, MSN reported.
Trump signed the bill into law right before taking his first overseas trip, eliminating an Obama-era regulation that encouraged states to establish auto-IRA programs, under which companies without retirement plans would automatically sign employees up for payroll-deduction IRAs.
However, several states have defied Trump’s draconian move by approving auto-IRA programs, while an additional 30 states were considering them, according to AARP, which has actively supported the plans.
According to the report, Oregon plans to proceed with a pilot auto-IRA program, called OregonSaves, that’s set to launch July 1, according to a statement from state Treasurer Tobias Read.
In California, state Senate Leader Kevin de Leon and Treasurer John Chiang released a joint statement on Thursday stating that “the California Secure Choice program stands on firm legal and statutory ground and will proceed without delay.”
Illinois and New Jersey, have also approved auto-IRA programs.
Some 55 million Americans lack access to savings plans through their employer, and research shows that without them very few people save on their own. Only 14% of U.S. households contribute to IRAs, and many use them primarily to hold assets rolled over from workplace 401(k)s, according to a recent study by the Center for Retirement Research at Boston College.
The Obama-era regulation overturned by Trump would have granted protection to employers who establish these accounts for their workers.