Washington State Governor Signs Bill Creating Retirement Plan Marketplace
FALLS CHURCH, Va., June 2, 2015 -- Washington State Governor Jay Inslee recently signed into law SB 5826, new legislation creating a Washington small business retirement marketplace. The marketplace will focus on small employers and help educate employers about affordable private sector retirement savings options, and will promote retirement savings among employees.
NAIFA commends the legislature and Governor for the approach taken by the bill. Unlike legislation currently being considered in several other states, SB 5826 is completely voluntary for employers and employees, relies on private sector retirement products rather than setting up a state-run retirement plan, and allows for the participation of all private sector financial services firms that meet the conditions set forth in the law. The law also expressly calls for the marketplace to include life insurance products designed for retirement purposes among the plans offered through the marketplace and provides that agents and advisers who help their clients enroll in a marketplace plan should receive market-based commissions for their services.
NAIFA Washington worked with lawmakers and other organizations to move SB 5826 to passage. “NAIFA believes the approach taken by Washington State with SB 5826 will bring greater benefits to employers and employees than efforts being pursued in other states, which would set up state-run retirement plans and require employers to participate”, commented NAIFA President Juli McNeely. “The private retirement plan market already offers a wide variety of comprehensive retirement planning solutions for persons in all walks of life, and there is no need for states to set up their own plans”, McNeely continued. “This law will play a crucial role in helping to educate consumers about the need to save for retirement and will promote retirement savings options among both employers and employees.”