The Obama Administration continues to push policies that transform how Americans save and access retirement plans—which could impact Big “I” members and many of their small business clients.

Last week, the Department of Labor (DOL) released a final rule that exempts state-sponsored retirement plans from the Employee Retirement Income Security Act (ERISA), as long as such plans meet certain criteria. The regulation also requires states to assume responsibility for the safety of employee contributions, including protection from mismanagement and fraud.

The intent of the recent DOL regulation is to encourage more states to establish retirement programs for private-sector workers, as similar efforts at the federal level have not gained traction. A handful of states—including CA, CT, IL, MA, MD, NJ, OR and WA—have approved legislation intended to bolster state-level retirement plan options. In some cases, the states would require businesses that do not offer private workplace retirement programs to automatically enroll their employees in state retirement accounts.

According to the DOL, roughly 55 million workers in the U.S. currently do not have access to a workplace retirement plan. Supporters of the DOL’s efforts hope the move will increase workers' retirement savings. A March 2016 report from the Center for Retirement Research at Boston College projected that participation in state-sponsored plans in California and Connecticut could range from 73% to 84%.

Meanwhile, detractors are worried about the rule’s potential unintended consequences. Some in the financial services industry have raised concerns that allowing state-run plans to operate outside of ERISA regulations—while making private operators satisfy ERISA—will push many private operators out of the market. Another concern is that the federal government will not be able to appropriately ensure the solvency of the state programs. Finally, some see the rule, and state efforts, as a mandate on small business.

The DOL has also issued proposed regulations that would allow local governments to establish similar programs. Under the proposed rule, a city could create its own retirement savings program, on three conditions: It has the authority under state law; its population is equal to or greater than the population of the least populous state; and the state does not have its own retirement savings program.