Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in strong opposition to H.J. Res. 66. Working families in my home State of Oregon and across the country deserve the opportunity to retire with security and…
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in strong opposition to H.J. Res. 66.
Working families in my home State of Oregon and across the country deserve the opportunity to retire with security and dignity. Unfortunately, that is not a reality for far too many Americans who face a growing retirement security crisis. In fact, nearly 40 million private sector workers, including an estimated 1 million in Oregon, do not have access to retirement savings plans at their jobs.
The AARP and others have noted that people who do not save for retirement risk becoming dependent on social safety net programs that increase costs for taxpayers.
Mr. Speaker, Congress has not stepped up to address our country's retirement security crisis, so several States, including my home State of Oregon, have developed and implemented innovative solutions that will help workers save for retirement.
Oregon's program is set to launch in just 5 months. Workers who do not have access to a retirement plan through their employer will have access to a plan facilitated by the State. It is not mandatory--workers can opt out--and there is minimal paperwork for employees. Oregon's plan is portable, so workers can keep their retirement savings when they change jobs.
Consider Oregonian Penny Wicklander, who has worked hard but hasn't had access to a good retirement plan. Penny managed an apartment complex for low-income seniors, and she saw the hardships that residents faced without retirement security. Some lived on $10 in the last 10 days of the month. She said, in support of Oregon's plan:
No one wants to retire into poverty and rely on public
services, but it's hard to plan for the future when there are
so many other financial challenges facing our families. We
need a simple retirement account that makes it easy for
everyone to save part of what they earn, regardless of where
they work.
Bobbie Sotin, a home care worker who cares for seniors and people with disabilities doesn't have access to a retirement savings plan through her employer. Bobbie said:
Working with seniors in poverty, many care providers see
their own future every day. Once they reach retirement age,
they have to make the decision to live in poverty or keep
working until they die. Even if it
means just $50 or $100 more per month, that kind of income
would make a huge difference to each and every one of us.
Penny, Bobbie, and people across the country need access to retirement savings plans. Oregon and several other States are working to fill that need. Congress should be supporting them and encouraging retirement savings programs like Oregon's and similar plans in California, Illinois, Connecticut, and Maryland. Instead, House Republicans are advancing a Congressional Review Act joint resolution of disapproval that would endanger these plans, discourage other States from taking action, and undermine states' rights.
Specifically, this resolution would nullify an important Department of Labor rule that simply clarifies that these State-based savings plans do not run afoul of ERISA, the Employee Retirement Income Security Act. The safe harbor rule went into effect last October.
Now, my friends on the other side of the aisle may characterize this as ``closing regulatory loopholes'' and they may question whether more government is the answer, but that is not what this is about.
The National Conference of State Legislatures and the State treasurers of Oregon, Illinois, and California submitted letters in opposition to this resolution. They found the ``DOL safe harbor provides flexibility to states, codifies clear protections for employers who facilitate retirement savings arrangements for their employees, and enables innovative solutions to addressing the growing retirement crisis facing this country.''
Mr. Speaker, I include in the Record these letters and several other letters in opposition to this resolution.
February 10, 2017.
Hon. Paul Ryan,
Speaker of the House,
Washington, DC.
Speaker Ryan: Earlier this week, Reps. Tim Walberg and
Francis Rooney introduced two resolutions of disapproval
(H.J. Res 66, H.J. Res 67) to roll-back key Department of
Labor (US DOL) rules. These resolutions will limit our
abilities as states to provide solutions to the growing
retirement savings crisis, and could make it harder for small
businesses to participate in state-run programs.
We are writing to ask that you defend our state's rights by
voting ``No'' on H.J. Res 66 and H.J. Res 67.
The rule in question gives clarity for states across the
country to provide access to retirement savings options for
millions of private-sector workers. California, Illinois, and
Oregon are all in the process of implementing legislatively
approved state-administered plans that will enable nearly 8
million private-sector workers to save their own money for
retirement.
As Treasurers, we chair the respective Boards governing our
state plans and have been actively working with employers,
employees, payroll providers, and financial service
organizations for the last two years. The reality is, that
without access to an easy and affordable savings vehicle, far
too many workers risk retiring into poverty and becoming
overly reliant on Social Security or state and federal safety
net programs.
The final rule from US DOL provides key protections for
employers who facilitate enrollment for their employees--
confirming a safe harbor from ERISA and protecting businesses
from litigation or liability related to state programs--while
maintaining key consumer protections for program
participants.
While this rule has been finalized, opponents are seeking
to repeal or weaken the rule through the Congressional Review
Act. We respectfully request that you oppose efforts to
repeal the rule and vote no on H.J. Res 66 and H.J. Res 67.
The US DOL safe harbor provides flexibility to states,
codifies clear protections for employers who facilitate
retirement savings arrangements for their employees, and
enables innovative solutions to addressing the growing
retirement crisis facing this country.
We are happy to provide additional information. Thank you
for your support.
Sincerely,
John Chiang,
California State Treasurer.
Michael Frerichs,
Illinois State Treasurer.
Tobias Read,
Oregon State Treasurer.
In summary, proponents of this Congressional Review Act resolution are rushing to nullify a rule that will make it easier for people save for retirement. That is unacceptable. Every American deserves to retire with dignity, and this resolution puts that fundamental American value at risk.
I ask my colleagues to join me in opposing H.J. Res. 66.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 3 minutes to the gentleman from Virginia (Mr. Scott), the ranking member of the Committee on Education and the Workforce.
Mr. Speaker, I yield 3 minutes to the gentleman from Massachusetts (Mr. Neal), the ranking member of the Committee on Ways and Means.
Mr. Speaker, I yield 3 minutes to the gentlewoman from California (Mrs. Davis), a senior member of the Committee on Education and the Workforce.
Mr. Speaker, just to clarify, there was a comment made that these are government-run plans. Under these plans, the States establish the framework for deducting the contributions, but these will be managed by investment professionals, not by the State.
Mr. Speaker, I yield 3 minutes to the gentleman from California (Mr.
DeSaulnier), my colleague, and a leader on the Education and the Workforce Committee.
Mr. Speaker, I assure my colleague that, as someone with a consumer protection background, I would not be opposing this resolution if it had consumer protections. In fact, this rule applies when States have strict investor protections.
Mr. Speaker, I yield 3 minutes to the gentlewoman from California (Ms. Maxine Waters), the ranking member of the Financial Services Committee.
May I inquire as to the remaining time.
Mr. Speaker, I yield 2 minutes to the gentleman from Oregon (Mr. Blumenauer), a senior member of the Ways and Means Committee.
Mr. Speaker, I include in the Record additional letters in opposition to this resolution.
Service Employees
International Union,
Washington, DC, February 13, 2017.
Dear Representative: On behalf of the two million members
of the Service Employees International Union (SEID), I urge
you to vote against H.J. Res 66 and H.J. Res 67, resolutions
disapproving of the Department of Labor's rules relating to
retirement savings arrangements established by states and
qualified state political subdivisions. The Department of
Labor rules make it easier for small employers to offer their
workers access to programs for retirement savings and achieve
an essential component of the American dream.
There is a retirement savings crisis in our country. Fifty-
five million workers do not have access to a retirement
savings plan at work. As a result, nearly half of all workers
have no retirement assets--no pension, no 401(k), and no IRA.
States have stepped in to begin to address this crisis with
innovative legislation that gives workers the opportunity to
set aside their own money in low-fee, professionally managed
savings accounts. Importantly, private sector money managers
and administrators will be hired to run these programs on
behalf of the states, generating American jobs. The
Department of Labor issued rules that clarified that
employers would not be subject to the fiduciary
responsibilities and reporting requirements of the Employee
Retirement Income Security Act (ERISA) under these state
initiatives.
In addition to helping workers achieve a dignified
retirement, the state initiatives provide small businesses
with easy, low-cost access to a retirement savings plan.
Small employers are the least likely to offer retirement
savings plans because the cost can be prohibitive and the
ERISA requirements can be onerous at the start. The state
initiatives also are fiscally prudent actions that will save
public spending. A new study by Segal Consulting estimated
that state Medicaid costs would be reduced by $5 billion
within the first ten years of implementation of the state
plans. Those savings would grow exponentially over time as
more workers retired with greater amounts of savings.
Five states--California, Connecticut, Illinois, Maryland
and Oregon--have enacted legislation and will soon begin
taking payroll contributions. About half of states have
studied or are studying this concept. Massachusetts and
Vermont are considering legislation that would also allow
employer contributions. Contrary to misinformation being
spread about these plans, the program funds are not
guaranteed by the state, and state and participating
employers will have no liability for the payment of
retirement funds earned by the participants. These state
plans are bipartisan public/private initiatives that
appropriately use states as laboratories for innovation. They
are a win for workers, for employers, and for governments at
all levels.
SEIU is also deeply concerned with efforts under the
Congressional Review Act (CRA) to circumvent the Executive
Branch process of rulemaking and issuing regulatory guidance.
Using the CRA authority to undo Agency regulations and
guidance crafted carefully and with public input strips away
the importance of the rulemaking process. Using this
authority could significantly weaken or undo past and future
rules that protect workers.
SEIU respectfully urges you to vote against resolutions
H.J. Res 66 and H.J. Res 67 disapproving of these important
rules. We may add votes on this legislation to our
legislative scorecard. If you have any questions please
contact John Gray, Legislative Director.
Sincerely,
Mary Kay Henry,
International President.
I yield 2 minutes to the gentlewoman from Illinois (Ms. Schakowsky), the co-chair of the Congressional Task Force on Seniors.
Mr. Speaker, I yield 2 minutes to the gentlewoman from Ohio (Ms. Kaptur), a senior member of the Appropriations Committee.
Mr. Speaker, I yield an additional 10 seconds to the gentlewoman.
Mr. Speaker, I yield 1 minute to the gentlewoman from California (Ms. Pelosi), the Democratic leader of the U.S. House of Representatives.
Mr. Speaker, I would like to inquire as to the remaining time, please.
Mr. Speaker, I yield 2 minutes to the gentleman from Maryland (Mr. Sarbanes).
Mr. Speaker, I yield myself such time as I may consume.
I thank all of my colleagues who came this afternoon to speak in opposition to this resolution. It shows how important it is to the working people in our States and in our districts. These are people who do not have a retirement plan. That is who we are looking out for.
I urge all my colleagues today to stand up for workers who deserve that chance at saving for retirement and who will get that chance because Oregon and other States have stepped up and are taking action.
Again, the Department of Labor safe harbor rule applies to States that have strict investor protections. We wouldn't be here today if those strict investor protections were not maintained.
I especially urge my colleagues, particularly those of us who are concerned about states' rights, not to undermine States like Oregon and all the others that have stepped up to create these innovative solutions. There is a gap. That is why so many people today do not have retirement savings.
Colleagues, please join us in opposing H.J. Res. 66.
I yield back the balance of my time.
Mr. Speaker, on that I demand the yeas and nays.