In his State of the City speech in January, Mayor Bill de Blasio promised that the city would create a system of retirement security for millions of New Yorkers who work in the private sector and may not have access to employer-provided savings plans. It was a revival of an effort the mayor had first pushed in 2016 but that bumped up against the change in presidential administrations and federal approvals apparently needed. But eight months after de Blasio’s speech at the start of this year, the New York City Council is ready to look at the idea through two bills that will be examined at a hearing later this month.
“We'll create a universal retirement system in our city, because if you've workedfor decades, then you've earned the right to retire in peace,” the mayor declared in January. There has been little public movement since, but as the mayor continues his presidential campaign, an initial Council hearing provides new promise.
De Blasio first put forward a “Retirement Security for All” proposal in 2016, but the legislative effort to achieve it was cut short in 2017 when President Donald Trump approved new federal regulations passed by a Republican-led Congress that undid an Obama era rule and limited municipalities from creating private-sector retirement programs. City officials believe they can still move ahead, however.
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Both Kallos and Miller expect little opposition at the local level, but there is a possibility that the bills may come under fire from private groups such as the ERISA Industry Committee, which lobbies on behalf of the country’s largest private employers with regards to employee benefits policies, or companies that sell retirement investment products.
“Retirement Security for All is tantamount to what would be the equivalent of a public option for insurance companies,” Kallos said. “And ultimately, companies that sell 401(k), 403(b) and other investment products have traditionally opposed this because they would rather see people not saving for retirement than see competition. And I think the real competition is having the fees that they can charge undermined.”