March 30: On This Day In 2017
401(k) and other retirement plans are great for those who can get them, but not everyone’s job comes with one. So, the Obama Administration created a rule that enabled those who don’t get them to enroll in retirement plans created by their states or cities.
They allowed governments to automatically enroll these private sector employees unless they opted out, helping them build their nest egg. And it gave states and municipalities more freedom to choose which plans they would use.
But apparently Trump didn’t like giving benefits to people, so his Labor Department looked to make a change. OTDI 2017 the GOP-led Senate voted to overturn the rule. They stripped the states of their rights to help people; they also thereby helped protect private investment banks who were feeling pressure from the state and local competition.
Essentially, overturning this rule took away the local control and put it in the hands of the federal government. This impact was especially on for the 13 million Americans benefiting from the retirement accounts.
Again, Trump punishes PoC: As the mayor of NYC noted, “This action by the GOP does little more than block (these recipients) — the majority of whom are women and people of color — from securing their futures,” the statement said, as quoted in the New York Times.
And as the Times noted “Thursday’s vote was only the latest regulation that Republicans have rolled back this year…Seven rollbacks have been signed into law by President Trump, with several others awaiting his signature.”
Further details
The New York Times covers this rule change and the hypocrisy of Republicans who claim to support “states rights”
On This Day In The Trump Administration: Trump makes it harder to build your nest egg via retirement plans