Several U.S. states are pressing ahead with efforts to bring retirement-savings plans to millions of private-sector employees, wagering they can defeat legal challenges that are expected after the Senate voted to repeal regulations encouraging such initiatives, The Wall Street Journal reported yesterday. At least 20 states introduced legislation in 2017 to consider such plans for residents without access to a workplace retirement plan. AARP, an advocacy group for older Americans, estimates about 55 million full- and part-time private-sector workers in the U.S. lack access to retirement-plan coverage through work. Under the programs, the first of which expects to launch in Oregon in July, workers will contribute a percentage of their earnings to a retirement savings account. The states are responsible for setting up the plans, selecting the investment options and making sure employee savings are secure. New Mexico recently approved a task force—typically the first step in creating a state plan — and Vermont is expected to ratify a retirement-savings program within days. Policy experts say a few more states could take similar steps by year-end.
