Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on H.J. Res. 66. Mr. Speaker, I yield myself such time as I may consume, and I…
Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on H.J. Res. 66.
Mr. Speaker, I yield myself such time as I may consume, and I rise today in strong support of H.J. Res. 66, a resolution to protect retirement savers.
During the final days of the Obama administration--in fact, the final hours--the Department of Labor created a regulatory loophole that threatens the retirement security of working families. We are here today to use Congress' authority under the Congressional Review Act to close that loophole by blocking a misguided regulation from taking effect.
The regulation paves the way for States to force certain employers to automatically enroll their employees into government IRAs. States would be allowed to skirt Federal law and deny workers important protections designed to safeguard their retirement savings.
The Obama administration's action is somewhat perplexing. The Employee Retirement Income Security Act, ERISA, has enjoyed strong bipartisan support for decades. As President Ford said when he signed the law, the American people have ``greater assurances that retirement dollars will be there when they are needed.'' Yet, over 40 years later, the same administration that frequently touted the importance of consumer protections moved to exempt States from ERISA.
The question is why. To facilitate the creation of government-run plans that
would lack basic protections for retirement savers? As a result, workers and retirees would have nowhere to turn if their savings were mismanaged.
Let's be honest about what this regulation is really about. It is part of an assault on small business retirement plans that began under the Obama administration. First, small businesses were hit by the fiduciary rule that would make it harder for them to access the financial advice they need to set up retirement plans for their employees. Then the Obama administration created a last-minute regulatory loophole that could discourage small businesses from offering retirement plans in the first place. As a result, many families could soon realize, If you like your 401(k) plan, you may not be able to keep it.
Because of this loophole, taxpayers also are at risk. Many of the States leading the charge on these government-run plans have a long history of mismanaging public employee pensions. Today there is an estimated $5 trillion in unfunded State pension promises--$5 trillion. That figure is completely unsustainable. It begs the question: Will taxpayers or retirement savers foot the bill if these government-run IRAs are similarly mismanaged?
However, we are not here today to debate the merits of State policy. To be clear, States should be free to experiment with new retirement options, and more options are certainly needed. It is up to the voters in each State to hold their elected officials accountable. The point of this debate is that States should not be exempt from a law that has, for decades, provided important protections for retirement savers. If States want to come up with new ways to help workers save for retirement, they can. But they should follow the law in the process.
The goal of this resolution is simple. It is to uphold protections Congress--including Members of both parties--have long afforded retirement savers. Today we can close a regulatory loophole that would be detrimental to the retirement security of hardworking Americans, and we can ensure retirement savers in every State continue to have the same protections under Federal law. I urge my colleagues to support strong protections for retirement savers by voting in favor of H.J. Res. 66.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 4 minutes to the gentleman from Tennessee (Mr. Roe), the immediate past chairman of the Subcommittee on Health, Employment, Labor, and Pensions.
Mr. Speaker, I guess the point that I would make again is not the fact that we are trying to stop States from doing this. In fact, this CRA does not do that at all. It just simply says we express our concern that States would be allowed as a result of what was put through in midnight fashion that exempted States from having to come under the same protections of ERISA that we would expect to be covered for all retirement plans. That is the challenge. We want to make sure that retirees' incomes are protected in a secure, safe way, and that is the value of ERISA. This proposal or the rule that was put through did not cover that, and that is our concern, again, protecting retirees.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
I want to make note that, as we discuss this here today, there have been points made about businesses wanting this change, they want to work with the States, and they are concerned about liabilities. Well, if that were the case, we wouldn't have endorsements of this coming from the Chamber of Commerce, Air Conditioning Contractors of America, American Benefits Council, NFIB, just looking through, the Small Business and Entrepreneurship Council, National Federation of Independent Business, National Electrical Contractors Association, National Black Chamber of Commerce, and I could go on and on, businesses and the business associations and groups that deal with this and have concern about their employees, their retirees, having a good and safe mechanism by which to have their retirement savings protected, supporting our efforts here to take back what took place under the cover of darkness, as it were, which took retiree savings off the benefit of ERISA. I just want that to be made clear.
I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
We are certainly willing to work with the States and would concur that there ought to be a laboratory.
But again, our concern, and basically the only concern, that this resolution deals with is that they be managed in such a way that they come under the protections given under ERISA. And why do we say that?
Well, we look at, for instance, Illinois' unfunded liability. We are looking at $114.8 billion at the end of fiscal year 2016--a State plan managed by, yes, an outside manager--but $114.8 billion under. We look at California Public Employees' Retirement System, CalPERS, which has a $228.2 billion shortfall in funding. Oregon's unfunded actuarial liability of the Oregon Public Employees Retirement Fund, again, managed by someone for Oregon, of $21.8 billion. If we looked at it all put together, we have over $5 trillion unfunded liability for State plans managed by some outside source.
That is where our concern comes from--this rule that was put through--that takes people out of the protections of ERISA. So we are saying: Have at it, States, but do it according to the rules and the protections that are there. That is all we are asking. We want retirees' savings to be protected for the purposes that they planned for and not come up short some day because of a lack of care and the coverage of ERISA on their plans.
I reserve the balance of my time.
Mr. Speaker, we are not opposing voluntary plans. We are not opposing States setting up plans that will encourage retirement. We are not opposing that. We are just saying we want to make sure they are protected under the same requirements of ERISA that all other plans are. We want to make sure that those dollars are there when the people need them. That is all we are saying. We are not opposed to voluntary or plans for retirement.
Mr. Speaker, I yield 2 minutes to the gentleman from Illinois (Mr. Roskam), my colleague and good friend, the chairman of the Ways and Means Subcommittee on Tax Policy.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I include in the Record a letter, undersigned, representing thousands of businesses, individual employees, and retirees from almost two dozen specific groups in support of H.J. Res. 66.
February 13, 2017.
To the Members of the United States Congress: The
undersigned organizations, representing thousands of
businesses, express our support for H.J. Res. 66 and H.J.
Res. 67, resolutions of disapproval under the Congressional
Review Act (``CRA'') to invalidate the Department of Labor's
(``DOL'') ``safe harbor'' regulations on Savings Arrangements
Established by State and Political Subdivisions for Non-
Governmental Employees.
These ``safe harbor'' regulations allow states and cities
to mandate private employer participation in state-sponsored
automatic IRA programs. It also provides that states that
offer these programs are not subject to ERISA despite
considerable opinions to the contrary. Thus the DOL is
encouraging state and local governments to provide private
sector employees retirement programs that do not have the
same high-level protections as other private employer-
sponsored plans.
Below we highlight a number of our concerns with the ``safe
harbor.''
Lost worker protections--States offering these plans to
private sector employees are not subject to ERISA, therefore
limiting the protections for workers in these plans.
Different standards from state to state result in an
administrative quagmire for employers--States can and will
have different rules for their programs, so employers
operating in multiple states, or just with workers from
multiple states, will have to track the complex web of
varying rules to ensure compliance.
Fewer employer plans, especially among small businesses--If
a state mandates auto-IRAs, some employers will decide to
avoid taking on the work of offering their own plans and let
the state take it on instead, resulting in the loss of
significant retirement savings opportunities for their
workers.
Mismanagement of state pension funds--Many states have
mismanaged their public employee retirement systems, and it's
not clear they'll do a better job controlling assets of
millions of small private sector savers. Also, some state
pension funds restrict investments to favor state initiatives
or engage in politically motivated investment and divestment
schemes instead of investing in the economic interest of the
workers.
Imposes a mandate on private employers--The ``safe harbor''
requires that the state program mandate employer
participation even though retirement savings plans are
traditionally voluntary.
We urge Congress to take timely action under the CRA to
vitiate these misguided regulations. We thank you for
addressing this important issue.
Sincerely,
Air Conditioning Contractors of America, American Benefits
Council, American Composites Manufacturers Association,
Financial Services Institute, Financial Services Roundtable,
Heating Air-conditioning & Refrigeration Distributors
International (HARDI), Insured Retirement Institute,
International Franchise Association, Investment Company
Institute, National Association of Insurance and Financial
Advisors (NAIFA), National Black Chamber of Commerce.
National Electrical Contractors Association, National
Federation of Independent Business, National Retail
Federation, Secondary Materials and Recycled Textiles
Association (SMART), Small Business & Entrepreneurship
Council, Small Business Council of America, Small Business
Legislative Council, Society for Human Resource Management,
The ESOP Association, The Latino Coalition, U.S. Chamber of
Commerce.
State Chapters of NAIFA
NAIFA--Alabama, NAIFA--Alaska, NAIFA--Arizona, NAIFA--
Arkansas, NAIFA--California, NAIFA--Colorado, NAIFA--
Connecticut, NAIFA--Delaware, NAIFA--Florida, NAIFA--Georgia,
NAIFA Greater Washington D.C., NAIFA--Guam, NAIFA--Hawaii,
NAIFA--Idaho.
NAIFA--Illinois, NAIFA--Indiana, NAIFA--Iowa, NAIFA--
Kansas, NAIFA--Kentucky, NAIFA--Louisiana, NAIFA--Maine,
NAIFA--Maryland, NAIFA--Massachusetts, NAIFA--Michigan,
NAIFA--Minnesota, NAIFA--Mississippi, NAIFA--Missouri,
NAIFA--Montana.
NAIFA--Nebraska, NAIFA--Nevada, NAIFA--New Hampshire,
NAIFA--New Jersey, NAIFA--New Mexico, NAIFA--New
York, NAIFA--North Carolina, NAIFA--North Dakota, NAIFA--
Ohio, NAIFA--Oklahoma, NAIFA--Oregon, NAIFA--Pennsylvania,
NAIFA--Puerto Rico, NAIFA--Rhode Island.
NAIFA--South Carolina, NAIFA--South Dakota, NAIFA--
Tennessee, NAIFA--Texas, NAIFA--Utah, NAIFA--Vermont, NAIFA--
Virginia, NAIFA--Washington, NAIFA--West Virginia, NAIFA--
Wisconsin, NAIFA--Wyoming.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I just make one comment that, when my colleagues on the other side of the aisle had both Houses and the White House and the opportunity to do these reforms, they weren't done. Yet, now, when we stand with great concern because of a midnight rule that was put through that takes away the security of retirees in programs that will be, as I said earlier, foisted upon employers to automatically enroll their employees into government-run IRAs--allowing the same States to skirt the Federal law of ERISA--and deny workers important protections, we are pushed back on.
I have some concern about that. When the opportunity to do what they say they want to be done could have been done with both Houses under control of the same party and the White House, this was not undertaken. Yet we are called out and told that we are hurting retirees when, in fact, we are giving assurances to retirees that you will come under the same protections regardless of where you go, and we expect that to be the case because it has worked. That is decried. I find that less than objective in its honesty.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
In response to the gentlewoman from California, I would just say that much of what we have been doing for the past 4 weeks on the floor, including today, is trying to give a shot in the arm to our economy, to our workers, our workforce, our retirees, and savers to take off some of the traps that have been put in place that have frustrated this economy and the growth of this economy for 8 years.
There is a reason for what took place at the ballot box. And the expectation is that we move to take some of the clamps of the Federal Government off the private sector, the States, the local communities, and, more importantly, the citizens of this country.
I reserve the balance of my time.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself the balance of my time, and I express appreciation for the full-throated debate that went on here. It is good to do that.
It is good for the opportunity to make it very clear that retirement security is a significant challenge facing this country. We have said that. I am glad that on the floor of the House today both sides of the aisle indicated concerns for that. Far too many men and women are struggling to save for their retirement years.
Unfortunately, in recent years, we have seen regulations like the fiduciary rule that will make it harder for low- and middle-income families to save for retirement. And we have seen a regulation that would strip away important protections for retirement savers.
As policymakers, we must do more to expand retirement options for workers. That is a given. That we can agree on. However, the regulatory loophole created by the Obama administration is clearly not the answer.
I want to remind my colleagues that this resolution does not prevent States from coming up with new retirement options for workers. That is not what this resolution is about, and simply reading it will assure you of that.
This resolution is about ensuring every American has strong protections for a secure retirement.
I urge my colleagues to protect retirement savers by voting in favor of H.J. Res. 66.
I yield back the balance of my time.