Bill > S1878

This bill makes several modifications to Massachusetts' deferred compensation program, primarily focusing on implementing an automatic enrollment feature for state and governmental employees. The bill changes terminology from "independent contractors" to "contracted employees" in existing law and allows the state treasurer to adopt budgets for the deferred compensation program that can include salaries for treasury employees administering the program. The most significant provision creates an automatic enrollment option for new employees, starting June 1, 2022, for state employees and June 1, 2024, for other governmental bodies. This automatic enrollment feature allows employees to be enrolled in the deferred compensation plan by default, with the ability to opt out within 90 days and receive a refund. The plan includes specific requirements such as limiting the deferral percentage to IRS safe harbor maximums, providing an auto-escalation option for contributions, specifying a default investment option, and adhering to IRS notice requirements. Employees enrolled through this feature would be considered part of the Massachusetts state employees' retirement system, and the enrollment can only be implemented at the discretion of individual governmental agencies.

Labor and Employment

https://malegislature.gov/Bills/194/S1878