Rescinding Rules that Protect State Innovation Will Reduce Retirement Savings Options for Americans
SALT LAKE CITY – March 8, 2017 – In recent letters, Utah State Treasurer David Damschen urged Utah Senators Orrin Hatch and Mike Lee to stand up for states’ rights to serve constituents without unnecessary interference from Washington – and uphold important DOL Rules that protect state innovation in the area of retirement savings plans. The U.S. House recently passed resolutions of disapproval (H.J. Res. 66 and H.J. Res. 67) nullifying these Rules.
“States are laboratories of democracy and when states roll up their sleeves to solve problems locally – we need the federal government to get out of the way,” said Utah State Treasurer David Damschen. “Many states have invested considerable effort these past several years passing legislation and developing programs to address the retirement savings gap. Rescinding these rules would be disruptive, create uncertainty, and curb the very innovation needed to address this critical problem nationwide.”
A recent study conducted by Provo-based Notalys shows that government outlays for new retirees in Utah will exceed $2.7 billion over the next fifteen years. Nearly 75 percent of these outlays will be spent on the one third of our constituents who are least-prepared financially for retirement.
In the letters, Treasurer Damschen noted that more than 500,000 private sector workers in Utah don’t have access to a retirement savings vehicle through their employerand nationwide nearly 55 million American workers lack such access. These workers are fifteen times more likely to save for retirement if they can do so through the convenience of an automatic payroll deduction workplace plan than they are by establishing a retirement account on their own.
“Nearly 75 percent of government spending on new retirees goes to the one third who are least-prepared financially for retirement,” added Treasurer Damschen. “As a fellow Republican I ask you to join us in staunch opposition to this regrettable infringement on states’ rights that will ultimately reduce retirement savings options for Americans.”
*Treasurer Damschen published an op-ed in the Washington Times on this issue at: http://www.washingtontimes.com/news/2017/mar/7/retirement-plans-must-be-available-to-small-busine/