Congress has moved to kill an Obama-era rule that would make it easier for states to launch retirement programs for millions of workers who do not have plans through their jobs, The Washington Post reports.
By a narrow 50-49 vote, the Senate approved a resolution to eliminate a rule that would have removed regulatory hurdles for states creating the programs. The vote broke down mostly along party lines, with the exception of Republican Sens. Bob Corker of Tennessee and Todd C. Young of Indiana, who voted against the resolution. The resolution now heads to President Donald Trump’s desk.
The programs would generally work by automatically enrolling employees who don’t have plans through their jobs, including many small business workers and part-timers, into individual retirement accounts.
Those employees would have the contributions taken straight from their paychecks. People who do not want to participate would be able to opt out. About 55 million Americans don’t have a simple way to save for retirement through work, according to AARP.
But the accounts have been strongly criticized by business groups and Republicans who say states should not be running retirement plans. Some critics say they local plans may discourage some employers from offering their own retirement programs.
