U.S. Markets closed

U.S. Senate repeals Labor Dept rule on state-run retirement plans

WASHINGTON, May 3 (Reuters) - In a razor-thin vote, the U.S. Senate on Wednesday approved a resolution killing a Labor Department regulation aimed at easing federal restrictions for new state-sponsored retirement savings plans for lower-income workers.

The rule, championed by states such as California but opposed by the mutual fund industry, exempted state-run retirement plans from strict pension protection laws.

It was the 14th Obama-era rule that the Republican-led Congress has killed under the once-obscure Congressional Review Act, which allows lawmakers to repeal newly minted regulations with only simple majorities in both chambers and a signature from the president.

The Senate passed the resolution in a 50-49 vote, and President Donald Trump was expected to sign it into law. (Reporting by Lisa Lambert and Sarah N. Lynch)