Wyden Floor Statement on Republican Efforts to Repeal State Retirement Plans
As Prepared for Delivery
WASHINGTON - Senate Finance Committee Ranking Member Ron Wyden, D-Ore., delivered a statement on the Senate floor blasting a congressional resolution to eliminate state retirement laws, which could jeopardize the launch of OregonSaves.
“My home state, along with a few others, have looked for fresh approaches to retirement savings. They want working people and middle income families – particularly those who don’t have access to a savings plan today – to have more opportunities to set money aside. And Oregon found a way to do it that eliminates a lot of hassle,” Wyden said. “We’re one of a handful of states that has passed what’s called an ‘auto-IRA’ law. Our program is called OregonSaves, and it’s set to launch in a few months.”
“The fact is, OregonSaves is simple, it’s easy to understand, and it’s exactly the kind of innovative program that’s needed to combat the savings crisis in this country. So it’s an absolute head-scratcher why the majority party in Congress would want to hang a menacing cloud over state auto-IRA programs. That’s what this resolution does. And the gut punch is going to be particularly tough on rural areas.”
Wyden’s full remarks can be found below.
For the second time in an administration that’s barely crossed the 100 day threshold, Republicans in Congress have teed up legislation that’ll make it harder for working Americans to save. And this time, it’s a proposal that goes after a brand new program that my home state of Oregon is getting ready to launch.
Let me make my view on this proposal very clear at the outset of this debate. This legislation puts special interests before working people. It’s that simple.
Colleagues, there is a savings crisis in this country. Typical Americans who work hard and bring home a paycheck every week or two are struggling to set money aside for retirement. Just think of the economic challenges people are up against every day. Millions of young people are buried under student loan debt, so the prospect of saving for retirement seems like it’ll remain a dream until years down the road.
Parents raising kids are faced with steep home loans and everyday bills. And at the same time, it can seem like the sticker price on four years of college education can match the GDP of a small island nation.
So the numbers on the savings crisis are alarming. More than half of workers approaching retirement age have nothing – zero – set aside in retirement accounts like IRAs or 401(k) plans. Tens of millions of Americans do not have access to retirement plans at work. In my view, addressing this crisis ought to be a bipartisan priority.
So in response to this crisis, my home state, along with a few others, have looked for fresh approaches to retirement savings. They want working people and middle income families – particularly those who don’t have access to a savings plan today – to have more opportunities to set money aside. And Oregon found a way to do it that eliminates a lot of hassle.
We’re one of a handful of states that has passed what’s called an “auto-IRA” law. Our program is called OregonSaves, and it’s set to launch in a few months.
What it’ll mean for Oregon workers is that when you get a job, you’ll get a retirement account. You can start setting a little aside with every paycheck. And it’s important to note that it’s not mandatory – people have the right to opt out.
What it means for businesses owners – particularly small business owners – is they can offer a savings plan without crippling fees or the hassle of dealing with red tape.
The fact is, OregonSaves is simple, it’s easy to understand, and it’s exactly the kind of innovative program that’s needed to combat the savings crisis in this country.
You often hear members in this chamber glowingly describe the states as the “laboratories of democracy.” The idea is that states should be empowered to come up with new ways to tackle challenges.
So it’s an absolute head-scratcher why the majority party in Congress would want to endanger the hard work states like Oregon have put into developing these savings programs. That’s what this resolution does. And the gut punch is going to be particularly tough on rural areas.
Colleagues, I first addressed this issue during a debate here a few weeks ago. Several employers had written into my office to say how big a deal OregonSaves would be for them. I shared a handful of those stories on the floor. And it was striking how many of those employers said the program would be a sea-change for rural businesses in terms of recruiting workers. Thanks to OregonSaves, they’d be able to compete when it comes to job benefits. The bill up for debate right now could put that in doubt.
OregonSaves and programs like it are not easy to set up. It took years of heavy lifting at the Department of Labor and a lot of close consultation with the states to get the legal roadblocks out of the way. But Republicans in Congress are putting all of that work in danger.
As I wrap up, colleagues, I want to step back and take a look at what this body has been working on. Even though the majority party has unified control of the government, the Senate isn’t exactly churning out bill after bill. There hasn’t been any landmark legislation taking on challenges facing our families.
To this point it’s been votes on nominations and bills tossing out federal rules that protect ordinary Americans.
So an awfully big share of the business of this Republican Congress comes down to taking steps like making it harder for Americans to save.
Bottom line, this proposal isn’t just a step in the wrong direction, it’s a flat out sprint in the wrong direction. Programs like OregonSaves are a commonsense response to a national savings crisis. The Congress should not pass any legislation threatening those programs and making our savings crisis even worse.
I urge my colleagues to oppose this legislation, and I yield the floor.
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