Bill > S722

This bill establishes the Massachusetts Secure Choice Savings Program, a state-sponsored retirement savings program designed to help private-sector employees who lack access to workplace retirement plans. The program will automatically enroll employees of businesses with 5 or more employees (that have not offered a retirement plan in the past two years) in a payroll-deduction Individual Retirement Account (IRA), with employees having the option to opt out or adjust their contribution levels. A seven-member board will oversee the program, including state officials and appointed representatives, and will be responsible for designing investment options, which include a default life-cycle fund and potentially other options like a conservative principal protection fund or secure return fund. Employers will be required to facilitate payroll deductions but will not be liable for investment performance or program administration. Employees can contribute up to the IRA tax-deductible limit, with a default contribution rate if no specific election is made. The program aims to provide a convenient, low-cost retirement savings option for private-sector workers who currently lack access to workplace retirement plans, with strict provisions to ensure the state and employers have minimal financial risk or legal liability for the program's performance.

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https://malegislature.gov/Bills/194/S722