2014 Wave Washes State Shores, Retirement Plan Regulation

The recent elections have had a dramatic effect on Capitol Hill. But there also have been some significant and surprising results on the state level as well — and they could affect retirement plan-related legislation on regulation in some states. ASPPA Executive Director Brian Graff and Political Director Jim Dornan offered their insights on just that in a recent ASPPA webcast.

There were significant shifts in executive power in three key states that have considered, or are considering, state-run retirement plans: Illinois, Maryland and Massachusetts. Graff noted that in Illinois, Republican challenger Bruce Rauner ousted Democratic incumbent Gov. Pat Quinn, and that this would likely deter the Illinois General Assembly from considering a bill from State Sen. Daniel Biss (D-Evanston) — the Illinois Secure Choice Savings Program Act — in the current legislative session, which ends this year.

In Maryland, former state Secretary of Appoinments Larry Hogan (R) upset Lt. Gov. Anthony Brown (D); Brown was the hand-picked successor of outgoing Gov. Martin O’Malley, who had signed an executive order that created a Maryland Retirement Security Task Force. That task force will now expire at the end of O’Malley’s term early next year.

Administrative Actions

Massachusetts, where Republican businessman Charlie Baker bested Democratic Attorney General Martha Coakley, had passed legislation in 2012 that created a state-run defined contribution plan for small non-profit employers. However, that plan is currently awaiting approval from the IRS and is not yet in operation.

For full coverage of the ASPPA webcast concerning the results and consequences of the November 2014, elections, click here.