WASHINGTON--(BUSINESS WIRE)--State initiatives aimed at helping millions of Americans retire with improved financial security have the momentum to succeed and overcome setbacks, a white paper released today by the National Conference on Public Employee Retirement Systems (NCPERS) has found.
The 36-page white paper, “Secure Choice 2.0: States Blazing a Path to Retirement Security for All,” marks two milestones in the growing movement among states to expand workplace retirement savings programs for private-sector employees:
- Six years ago, in September 2011, NCPERS laid out the rationale for state-facilitated retirement programs for private-sector workers in a white paper, “The Secure Choice Pension: A Way Forward for Retirement Security in the Private Sector.”
- Five years ago, in September 2012, California became the first state to formally act on the Secure Choice model by passing the Secure Choice Retirement Savings Trust Act, which established a board and authorized a comprehensive feasibility study.
“Our 2011 white paper galvanized efforts in a number of states that had been frustrated with the federal government’s lack of leadership on retirement policy,” said Hank Kim, executive director and counsel of NCPERS. “We have made tremendous progress since 2012 as state after state has embraced the goal of creating paths to retirement savings for millions of private-sector workers.”
Kim noted that Oregon on July 1, 2017, became the first state to accept participants in a Secure Choice-inspired automatic-savings program. Additional programs have been enacted and are being developed in California, Connecticut, Illinois, Maryland, New Jersey, Vermont and Washington. Since 2012, 40 states have undertaken studies or initiated other early steps toward the creation of a retirement savings program for the private sector.
The new white paper features interviews with a wide range of stakeholders, including: Angela Antonelli (Georgetown University), Phyllis Borzi (former Assistant Secretary of Labor), Michael Frerichs (Illinois State Treasurer), Sarah Mysiewicz Gill (AARP), Kevin de León (California State Senator), Kevin Lembo (Connecticut Comptroller), Lisa Massena (Oregon Retirement Saving Plan), Nari Rhee (University of California-Berkeley), John Scott (Pew Charitable Trusts), Katie Selenski (California SecureChoice), and Jeremy Smith (Aspen Institute).
The white paper covers three broad topics: A history of how the Secure Choice approach gained popularity, details on various initiatives underway in the states, and perspectives on what challenges and hurdles states face, especially following the withdrawal earlier this year of ERISA Safe Harbor rules that were designed to make it easier for states to develop their own so-called Auto-IRA programs. In addition, it includes appendixes on state and local developments, model legislation, helpful organizations and websites, and models projecting various savings scenarios.
About NCPERS
The National Conference on Public Employee Retirement Systems (NCPERS) is the largest trade association for public sector pension funds, representing more than 500 funds throughout the United States and Canada. It is a unique non-profit network of public trustees, administrators, public officials and investment professionals who collectively manage more than $3 trillion in pension assets. Founded in 1941, NCPERS is the principal trade association working to promote and protect pensions by focusing on advocacy, research, and education for the benefit of public sector pension stakeholders.
