Sen. Orrin Hatch (R-UT), chair of the Senate Finance Committee, introduced two resolutions to end Obama Administration regulations that encourage states to require businesses to enroll employees in state-run retirement plans.
The resolutions — S.J.Res. 32 and S.J.Res. 33 – would roll back the Department of Labor’s “auto-IRA” rule, where states could establish auto enrollment, payroll-deduction plans for private sector employees of companies that do not offer 401(k) plans. The rules were established in the latter part of the Obama Administration.
Similar resolutions — H.J.Res. 66 and H.J.Res. 67 — were introduced in the House in February by Reps. Tim Walberg (R-MI) and Francis Rooney (R-FL).
“These rules are yet another example of the previous administration’s preference for government solutions to every problem and its affinity for over-regulation and bureaucratic red tape,” Hatch said. “These proposed regulations encourage more mandates on job creators and promote locking American workers in risky state-run plans.”
The resolution would stand to break more than 40 years of precedent, which have allowed states to limit retirement options and encourage states to place mandates on job creators.
“Rolling the regulations back will give employees and small business owners more flexibility and freedom to choose how to financially invest and build a nest egg for retirement.” Hatch said. “Moreover, bipartisan, voluntary solutions exist that would address retirement coverage issues for private businesses and their employees that do not rely on government mandates or government run plans.”