Bill > H39

This bill modifies Massachusetts law regarding deferred compensation programs for state employees by introducing an automatic enrollment feature for new employees hired on or after June 1, 2024. The bill changes terminology from "independent contractors" to "contracted employees" and allows the state treasurer and governmental bodies to automatically enroll new employees in a deferred compensation plan without requiring prior employee authorization. The automatic enrollment feature includes several key provisions: it applies only to new employees, allows for automatic contribution increases (auto-escalation) up to the IRS safe harbor maximum, provides employees up to 90 days to discontinue participation with a full refund, establishes a default investment option for those who don't choose their own investments, and requires notice in accordance with Internal Revenue Code regulations. Importantly, this feature is optional for state agencies and departments, and each governmental body can elect whether to implement the automatic enrollment for their new employees. The bill represents an effort to make retirement savings more accessible and automatic for public sector workers, potentially increasing retirement savings participation.

Labor and Employment

https://malegislature.gov/Bills/194/H39