News Release


Washington, D.C., (May 19, 2015)
— ACLI commends Washington Governor Jay Inslee for signing Senate Bill 5826, which creates a first-of-its-kind small business retirement marketplace to provide greater access to 401(k) and other private retirement plans, as well as the new federal myRA plan.

The state does not provide the retirement plan. Instead, it will contract with a private sector firm to develop the marketplace and establish procedures for approving the vendors. The program director will approve all private vendors—including life insurers—that meet the qualification standards. To be eligible, firms must offer at a minimum a target date or similar fund with asset allocations and maturities designed for an expected date of retirement; and a balanced fund. Annual fees charged to enrollees will be limited to 100 basis points.

The marketplace will offer a diverse set of private retirement plan options that are available to employers on a voluntary basis, including life insurance plans that are designed for retirement purposes, and at least two types of plans for eligible employer participation: A SIMPLE IRA-type plan that provides for employer contributions to participating enrollee accounts; and a payroll deduction individual retirement account type plan or workplace-based individual retirement accounts open to all workers in which the employer does not contribute to the employees' account. The site will also provide education about plan options, tax incentives and the federal myRA program.

Workplace retirement savings plans, such as 401(k)s, are widely available today. Nearly 80 percent of American full time workers have access to workplace retirement plans and more than 80 percent of those with access to plans participate.  Recognizing that more can be done, ACLI worked closely with the Securities Industry and Financial Markets Association, the Washington Bankers Association and the bill’s sponsor, Washington state Sen. Mark Mullet, to ensure that this bill will support the private retirement system while making it easier for more small businesses and their employees to access private retirement plans. ACLI is grateful to Sen. Mullet, to the House sponsor, Rep. Larry Springer, and to leaders in both houses who came together to support this important legislation.
    
For more information on the private retirement system, go to www.usretirementfacts.com.

 

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The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with approximately 300 member companies operating in the United States and abroad. ACLI advocates in federal, state, and international forums for public policy that supports the industry marketplace and the 75 million American families that rely on life insurers’ products for financial and retirement security. ACLI members offer life insurance, annuities, retirement plans, long-term care and disability income insurance, and reinsurance, representing more than 90 percent of industry assets and premiums. Learn more at www.acli.com.

CONTACT

David Nielsen (202) 624-2919
David Nielsen (202) 624-2919