House Bill 6080 was introduced by Representatives Edwards, Blazejewski, and others on April 15, 2015. It called for an automatic enrollment payroll deduction IRA program to be administered by the Department of Labor and Training (DLT) for private sector workers.
The program would promote greater retirement savings for private sector employees in a way that is convenient, voluntary, low-cost and portable. DLT would be responsible for designing a program that would allow employees to opt out, select a contribution level and investment option, and terminate participation. The Department would also be in charge of facilitating education and outreach to employers and employees. The default contribution option would be set at three percent, unless the employee chooses a higher rate. Investment options would include a life-cycle fund or target date fund as the default options.
Implementation would begin 24 months after the legislation was enacted and employers would establish a payroll deposit retirement savings arrangement within six months after implementation.
The bill was introduced to the House Committee on Labor and a hearing took place on April 30, 2015, where the committee recommended the measure be held for further study. Last updated 10/21/15.
2015 Legislative Session Dates: January 6, 2015 – June 25, 2015
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Source: Georgetown University’s Center for Retirement Initiatives