Bill > S1879

This bill aims to expand access to retirement savings by modifying several provisions related to deferred compensation programs for state employees. The bill introduces an automatic enrollment feature for new employees of the Commonwealth and governmental bodies, starting June 1, 2024, which allows for payroll deductions for retirement savings without requiring prior employee authorization. The automatic enrollment will have several key specifications, including a cap on deferral percentage based on IRS safe harbor rules, an automatic annual increase in deferred compensation, and the ability for employees to opt out within 90 days with a full refund. The bill also removes restrictions on small employers (previously limited to those with 20 or fewer employees) and allows the state treasurer to seek private donations or grants to reduce operating expenses for the retirement plan. Additionally, the bill makes a minor terminology change, replacing "independent contractors" with "contracted employees" in existing law. These modifications are intended to make retirement savings more accessible and easier to participate in for state and governmental employees, with flexible opt-out provisions to protect employee choice.

Labor and Employment

https://malegislature.gov/Bills/194/S1879