President Donald Trump signed a one-page resolution last week that read in its entirety:
Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That Congress disapproves the rule submitted by the Department of Labor relating to ‘‘Savings Arrangements Established by Qualified State Political Subdivisions for Non-Governmental Employees’’ … and such rule shall have no force or effect.
The resolution puts the brakes on a U.S. Department of Labor rule that became effective shortly before President Trump took office. The rule would have reduced liability for cities creating automatic-enrollment, payroll-deduction individual retirement account programs for private-sector workers. Subject to certain conditions, these programs were exempt from requirements under the Employee Retirement Income Security Act.
The resolution passed both chambers of Congress along party lines. Another rule, allowing states to set up auto-IRAs, will likely also be halted. The House has already passed a resolution to kill it, but it has not yet been voted on by the Senate.