AARP Is Fighting to Protect State Flexibility on Retirement Plans

Innovative state solutions to America’s savings crisis are in danger. Federal overreach threatens an important Department of Labor rule that gives states flexibility to help workers save for retirement. Fifty-five million workers in America have no way to save for retirement out of their regular paychecks. Their employers don’t offer a retirement plan because it can be costly and complicated to do so. The problem is especially severe among communities of color. Only 54 percent of African American and Asian …

Retirement Savings Loophole Closed

En español | According to the Council of Economic Advisers, last year alone, a retirement savings advice loophole cost Americans $17 billion as a result of extra fees. Fortunately, the Department of Labor last week unveiled a new rule finally closing a loophole that allowed some financial experts to give advice that was in their own  interest — rather than the best interest of hardworking Americans. Why did this loophole exist? The original guidelines for financial advice under the Employee …

Let’s Give Small-Business Owners a Competitive Edge

“People give their time to their job. They shouldn’t have to fear what happens when they’re done working.”  — Molly Sumner of Kindred Companions Molly Sumner of Frenchtown, N.J., owns a small business called Kindred Companions, training dogs and selling pet supplies.  Unfortunately, Molly’s employees are some of the nearly 2 million New Jerseyans — and 55 million Americans — who don’t have a retirement savings plan through work. “It’s something I want for my employees,” Molly says, but not …

Why AARP Backs a New Retirement Plan Advice Rule

Yesterday was the due date for comments on a rule proposed by the U.S. Department of Labor that would protect people with 401(k)s and IRAs from conflicts of interest in the financial services industry. AARP filed our official comments yesterday, one on the new rule and one on the new proposed best interest contract exemption. The rule, proposed in April, requires all retirement plan advisers to provide advice in their clients’ best interest. That is the simple goal underlying the …

Family and Medical Leave Rights Expanded to All Legally Married Couples

Starting March 27, legally married same-sex couples will be able to take unpaid time off to care for a spouse or sick family members even if they live in a state that doesn’t recognize their marriage. The final rule issued by the Department of Labor revises the definition of “spouse” in the Family and Medical Leave Act to recognize legally married same-sex couples regardless of where they live. Prior to that, only couples that lived in a state that recognized …

Is Your Employer Shortchanging Your 401(k)?

If you’re fortunate enough to get a company match in your 401(k) savings plan, you might be feeling lucky. Unless you’re in a plan that’s being shortchanged by your employer. According to a report from the Department of Labor, nearly 73 percent (or 2,677) of the plans it audited last year made the wrong employer match or made some other error. The upshot? A whopping $423.6 million was restored to workers’ 401(k)s last year. Among the more common mistakes: failing to account …