WASHINGTON — The U.S. Senate has overturned a 2016 Department of Labor guideline that aided small businesses in setting up retirement plans for their employees. The vote was 49 to 1.
The guideline, issued by the Obama administration, provided means for states to set up retirement plans without running afoul of federal pension laws, according the AARP Inc. and Small Business Majority (SBM), which had supported the plan.
"Striking down this rule will have a chilling effect on states that are establishing their own retirement savings programs, which in turn will harm small businesses and their employees," said SBM Founder and CEO John Arensmeyer.
The U.S. House of Representatives took similar action in February.