IRA Provider Insights

The State-Run IRA Opportunity Part 1: Overview

Posted by Mark Fleckenstein on Jun 28, 2017 7:30:00 AM

40 states have already explored a state-run IRA program, with 11 of them actually passing some form of legislation. Is your firm ready for this new frontier?


Since 2012, 40 states and three cities in our country have implemented, studied, or explored legislation that would enact a government-run retirement plan for private sector employees. The start of 2017 legislative sessions has continued this momentum.

1.pngSeveral states, including California, Connecticut, Maryland, and New Jersey, are implementing the laws which they passed in 2016. Washington and Oregon are currently scheduled to open their programs for enrollment in 2017.

These plans are borne out of what some pundits like to label a retirement crisis: 56-percent of Americans have less than $10,000 in assets, and one-third of Americans have NOTHING saved for retirement.*

Adding more excitement to these developments - or confusion, depending on your perspective - was the ongoing battle over whether these state or city plans will be subject to ERISA. Thankfully on May 17th, President Trump signed legislation overturning the ERISA exemption for these city and state plans.

Unfortunately, many people in the industry seem to believe that the overturning of the ERISA exemption effectively overturned these state plans. That is not the case. It simply means the state plans will have to compete with the retirement industry on equal footing.

This eBook will discuss the next steps for these city and state plans, their shortcomings, the impact on small-and medium-sized businesses, and the opportunities for the retirement industry to offer alternatives.

Click here to download your state-run IRA eBook

Topics: Payroll IRA Programs for Payroll Companies, State Run IRAs, state-run retirement, Payroll IRAs