NAIFA Advocacy Pays off – State Retirement Plans Now Fall under ERISA



A graduate of the University of Michigan, Michael Sordyl has served as a financial advisor with a number of firms throughout Ohio and Michigan for the last decade and currently works with the Ashley Group in Ohio. Active in his field, Michael Sordyl is a member of the National Association of Insurance and Financial Advisors (NAIFA).

As a result of NAIFA’s advocacy, the Senate recently approved legislation that makes state employee pensions subject to the Employee Retirement Income Security Act (ERISA). These plans had previously been exempt from ERISA oversight through guidelines handed down from the Department of Labor. Under the new law, however, state employees will now be afforded the same safety net that private retirement investors enjoy.

Another important outcome of the law is that government plans no longer have a competitive advantage over private-market retirement products due to a lack of regulatory oversight. With adequate market competition and protections in place for investors, the law ensures that savers come out as the main benefactors.