State official proposes new government-administered retirement fund for private sector workers without access

Bill Galvin
Secretary of State William F. Galvin testified this week at a State House hearing on a bill he proposed that would create a state-administered retirement plan for businesses without them. –The Boston Globe

In an effort to give more workers access to retirement plans, Massachusetts’s Secretary of State William F. Galvin testified this week at a State House hearing on a bill he proposed that would create a state-administered retirement plan for businesses without them, the The Boston Globe reports.

Galvin’s plan would allow private investment firms to bid on managing the money of participants, and would apply to companies with 25 workers or more. Employers who currently do not offer a 401(k) plan would be required to make the state plan available to employees, but would not have to match funds.

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Some businesses oppose the bill, according to the Globe, saying companies have access to retirement plans if they want them. For example, President Obama launched the “MyRA’’ program earlier this month, which offers low-risk IRA accounts to workers.

Officials in states around the country have proposed several similar bills since the U.S. Labor Department eased regulations letting states serve as fiduciaries for retirement plans.

Read the full Globe story here.

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