State-led private-sector retirement programs face federal challenge

Several Republicans in Congress this week introduced a resolution that could put a damper on state-led retirement programs for private-sector workers, according to a trade association of pension funds.

The resolution, if approved by Congress, would kill a recent Department of Labor ruling that such programs are permissible under federal law. DOL’s August rule provided safe-harbor provisions to states that created the retirement programs, which target a documented lack of retirement savings among American workers.

Connecticut is among eight states that have created retirement programs for private-sector workers, according to the National Conference on Public Employee Retirement Systems, which opposes the attempt to revoke the safe-harbor provisions.

Connecticut created its program last year. Click here to read a Q&A with Connecticut Comptroller Kevin Lembo, who advocated for it.