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WASHINGTON (AP) — The Obama administration has finalized a new rule intended to encourage states to set up their own retirement plans.
The Department of Labor rule is designed to clarify how voluntary, state-run retirement programs are regulated by the federal government.
Labor Secretary Tom Perez says the state-run plans are a promising new option for people who are saving too little for retirement. He says one-third of U.S. workers don't have access to employer-based retirement programs.
Eight states have created their own plans, and some require some employers to automatically enroll workers if they don't offer their own plans.
Perez says his department is also proposing a rule that would allow some large cities to follow suit.
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