Congress Targets California’s 401k Plan
In spite of all the rhetoric we’ve heard from Trump and other Republicans about making Washington work for Joe Six-Pack out in the hinterlands, when it comes to walking the walk, it’s the same old story.
Our state recently passed California Secure Choice. The new law would require small businesses to allow their workers to contribute to a state-administered individual retirement fund. The businesses themselves would not be required to make contributions. You can check out the California State Treasurer’s website for more information.
State-sponsored retirement plans were given the U.S. Department of Labor seal of approval. Governor Jerry Brown touted the new law as a way for workers who have little savings to make up some lost ground in building a nest egg.
But guess what?
Last week the U.S. House effectively killed these plans by closing off an Obama administration order that gave them the green light. The Senate will probably follow suit. There is a House Education and the Workforce Committee news release full of double-speak and false claims that attempts to justify shutting down these plans. The GOP opposes them because the financial services industry feels that state sponsored plans will be unfair competition. It’s Wall Street over Main Street once again.
The sad fact is Republicans are killing this opportunity for millions of small business workers currently not covered by 401k plans to live a better retirement, and I think the Republicans need to own it.