Numerous NAIFA state associations, including those in Connecticut, Maryland, Illinois, Minnesota and West Virginia, are working with industry partners such as the ACLI to actively oppose legislation that would create state-government-run retirement plans.
Under the proposals, state-run retirement programs designed for private-sector employees would directly compete with established private-market plans.
NAIFA encourages efforts to promote retirement savings. However, government-run retirement plans could put taxpayers’ dollars at risk and would not address the fundamental problems of people who lack the resources or will to save for retirement or who are unaware of the private-market options. Existing, employer-based and private-sector retirement plans already provide successful and cost-effective means for those who have the resources to save for retirement.
“There is no shortage of cost-effective retirement plan options in any state,” said NAIFA President John Nichols. “Why would governments want to step into a market where consumers are already well-served by the private sector? A better role for governments might be to encourage saving by educating people about the very good private options that already exist.”
Legislators in Connecticut, Illinois, Maryland, Minnesota and West Virginia are actively considering bills that would create state-run retirement plans. Similar legislative proposals in Arizona, Indiana, Maine, Ohio, Washington, and Wisconsin have either failed or stalled.