Auto-IRA measures move forward in New York and Illinois
The states advanced respective bills, with the one in New York amending its voluntary IRA law to an automatic design and the one in Illinois dramatically lowering the threshold for mandatory participation in its existing program.
May 19, 2021 2 MINS
Two states – New York and Illinois – are working to pass legislation that would give a big boost to auto-IRA initiatives.
Last week the states advanced respective bills, with the one in New York amending its voluntary IRA law to an automatic design and the one in Illinois dramatically lowering the threshold for mandatory participation in its existing program.
State Street Pays $115 Mln Penalty To Resolve Potential Criminal Claims With USAO
WASHINGTON (dpa-AFX) - State Street Corp. (STT) announced Friday that it has resolved, or agreed to resolve, certain outstanding claims and investigations arising from its previously disclosed determination in 2015 that it had incorrectly invoiced clients for certain expenses.
In a Form 8-K filing with the U.S. Securities and Exchange Commission, State Street revealed that it paid a $115 million penalty to settle the potential criminal claims after entering into a Deferred Prosecution Agreement with the Office of the United States Attorney for the District of Massachusetts (USAO).
In May 2021, State Street also agreed to pay $2.65 million to resolve a purported class action that had been commenced against it in March 2017 alleging that it had violated duties owed to retirement plan customers under the Employee Retirement Income Security Act.
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Here’s an alarming statistic: According to research by the Federal Reserve, one out of every four Americans has nothing saved for retirement. Part of the reason is that, according to the Schwartz Center for Economic Policy Analysis, more than 60% of Americans aren’t participating in an employer’s pension or retirement savings plan. Surveys find that such plans are extremely popular with workers, but many employers simply don’t offer them they’re put off by the accompanying paperwork, costs and responsibilities.
So, under the leadership of then-Sen. Kevin de León (D-Los Angeles), the state of California did its residents an enormous service in 2017 when it launched a simple and automatic retirement savings program for workers whose employers do not offer pensions or a 401(k). That program CalSavers Retirement Savings, or CalSavers has begun enrolling its first participants, although it won’t be fully phased in until the middle of next year.
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CalSavers Defeats ERISA Preemption Challenge In 9th Circ.
Law360 (May 6, 2021, 6:18 PM EDT) A Ninth Circuit panel handed a victory to California s state-run retirement program Thursday in a suit that had challenged its right to exist, ruling that the state law that created CalSavers isn t canceled out by the federal Employee Retirement Income Security Act.
The Ninth Circuit decided Thursday to uphold a California law that cleared the state house, seen here, in 2017. The court ruled that the legislation isn t preempted by the federal Employee Retirement Income Security Act, and the program it created, CalSavers, can stand. (Sundry Photography / iStock) The ruling preserved a lower-court win for CalSavers, which has created individual.
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Health Plan Tries To Sink Ed Asner-Led Age Bias ERISA Suit
Law360 (May 3, 2021, 7:27 PM EDT) The SAG-AFTRA health plan is looking to beat back the latest version of a suit claiming the pandemic-related changes it made to its eligibility requirements violate ERISA and discriminate against older participants like 91-year-old actor Ed Asner, asking a California federal judge to toss the proposed class action.
The plan, which provides health care to members of the Screen Actors Guild-American Federation of Television and Radio Artists union and their families, argued in its motion to dismiss Friday that the eligibility changes can t be challenged under the Employee Retirement Income Security Act.