summary
Introduced
02/17/2025
02/17/2025
In Committee
05/01/2025
05/01/2025
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 529 College Savings Program has demonstrated the feasibility of a public-private partnership that outsources investment and administration to assist private citizens of the State to save on a voluntary and cost-efficient basis; 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, particularly those without access to employer-sponsored retirement plans, save for retirement through individual retirement accounts (IRAs). The program will create a voluntary payroll deduction system where covered employees can contribute to Roth IRAs, with a standard initial contribution rate of 5% that can be adjusted by participants. A 12-member board will be established within the Department of State Treasurer to oversee the program, with members appointed by the Governor, State Treasurer, and legislative leaders. The program aims to provide a simple, low-cost retirement saving option for approximately 1.7 million North Carolina workers who currently lack easy access to retirement savings vehicles. Key features include automatic enrollment with opt-out options, investment in target date funds by default, and prohibitions on employer contributions. The bill appropriates $400,000 for fiscal year 2025-2026 and $600,000 for 2026-2027 to help launch the program, with the goal of becoming financially self-sustaining over time. The program is designed to be implemented by July 1, 2027, and includes extensive protections for employers and the state from liability related to the program's operation.
Committee Categories
Budget and Finance
Sponsors (13)
Gale Adcock (D)*,
Robert Hanig (R)*,
Tim Moffitt (R)*,
Val Applewhite (D),
Dan Blue (D),
Jim Burgin (R),
Jay Chaudhuri (D),
Lisa Grafstein (D),
Dana Jones (R),
Paul Lowe (D),
Julie Mayfield (D),
DeAndrea Salvador (D),
Caleb Theodros (D),
Last Action
Re-ref Com On Appropriations/Base Budget (on 05/01/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ncleg.gov/BillLookUp/2025/S110 |
| BillText | https://www.ncleg.gov/Sessions/2025/Bills/Senate/PDF/S110v1.pdf |
| BillText | https://www.ncleg.gov/Sessions/2025/Bills/Senate/PDF/S110v0.pdf |
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