One Hundred Fifteenth Congress
Of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the third day of January, two thousand and seventeen
Joint Resolution
Disapproving the rule submitted by the Department of Labor relating to savings arrangements established by States for non-governmental employees.
Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That Congress disapproves the rule submitted by the Department of Labor relating to “Savings Arrangements Established by States for Non-Governmental Employees” (published at 81 Fed. Reg. 59464 (August 30, 2016)), and such rule shall have no force or effect.
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Explanation:
H.J.Res. 67 disapproves and nullifies the rule issued by the Department of Labor on August 30, 2016, establishing a “safe harbor” from the Employee Retirement Income Security Act for government-run IRAs managed by states and certain political subdivisions for private sector workers.
Under the final rule, cities and large political subdivisions will not have to comply with the fiduciary oversight and other protections of ERISA that ensure that workers’ savings are available to provide a secure retirement. In addition, the rule will result in overlapping and inconsistent requirements for employers operating in multiple jurisdictions, even within a state, disregarding ERISA’s statutory preemption of state and local laws affecting employee benefit plans.