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Bill > H79

NC H79

NC H79
North Carolina Work and Save

summary

Introduced
02/10/2025
In Committee
06/25/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Session

Bill Summary

AN ACT TO CREATE THE SMALL BUSINESS RETIREMENT SAVINGS PROGRAM AND TO APPROPRIATE FUNDS. Whereas, the General Assembly finds that too many North Carolina citizens have no or inadequate savings for retirement, and an estimated 1.7 million North Carolina working families, including employees, independent contractors, and the self-employed, have no access to an employer-sponsored retirement plan or program or any other easy way to save at work; and Whereas, it is the policy of the State to assist the North Carolina private-sector workforce, including in particular moderate- and lower-income working households, to voluntarily save for retirement, including by facilitating saving in individual retirement accounts (IRAs) as well as by encouraging employers to adopt retirement savings and other retirement plans for employees in the State; and Whereas, more adequate, portable, low-cost, and consumer-protective retirement saving by North Carolina households will enhance their retirement security and ultimately reduce the pressure on State public assistance programs for retirees and other elderly citizens and the potential burden on North Carolina taxpayers to finance such programs; and Whereas, the General Assembly intends to establish a North Carolina Work and Save Program that will use the services of competent and qualified private-sector entities selected by the North Carolina Small Business Retirement Savings Program Board to administer the Program and manage the funds on behalf of the Program participants; and Whereas, the North Carolina Department of State Treasurer manages the State's finances, including pensions, healthcare, investments, and unclaimed property; Now, therefore,

AI Summary

This bill establishes the North Carolina Work and Save Program, a state-sponsored retirement savings initiative designed to help private-sector workers without access to employer-sponsored retirement plans save for retirement through individual retirement accounts (IRAs). The program will create a Board within the Department of Commerce to develop and manage a voluntary payroll deduction IRA arrangement for covered employees and self-employed individuals. The standard offering will be a Roth IRA with a target date fund and an initial 5% contribution rate, though participants can adjust their contribution levels and investment choices. Key features include automatic enrollment with the option to opt-out, no employer contributions, portability of benefits, and low-cost investment options. The Board will be composed of 12 members appointed by the State Treasurer, Governor, and legislative leadership, representing diverse expertise in retirement savings, small business, and employee interests. The program aims to help the estimated 1.7 million North Carolina working families without easy access to retirement savings options, with the goal of improving retirement security and potentially reducing future pressure on public assistance programs. The state will provide initial funding of $400,000 in 2025-2026 and $600,000 in 2026-2027 to help establish the program, which is intended to become financially self-sustaining over time. The program is scheduled to begin accepting contributions by July 1, 2027, and is designed to avoid federal ERISA preemption.

Committee Categories

Budget and Finance, Business and Industry, Labor and Employment

Sponsors (25)

Last Action

Re-ref Com On Insurance (on 06/25/2025)

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