Bill > H2825

This bill expands retirement savings options for state employees by introducing an automatic enrollment feature for deferred compensation programs. Specifically, the bill changes terminology from "independent contractors" to "contracted employees" and allows the state treasurer to establish an automatic enrollment option for new employees hired on or after June 1, 2024. Under this new feature, employees will be automatically enrolled in a deferred compensation plan (similar to a 401(k) retirement savings program) with several key protections: employees can opt out within 90 days and receive a refund, the contribution percentage will not exceed IRS safe harbor limits, contributions will automatically increase annually (unless the employee opts out), and a default investment option will be provided for those who do not choose their own investments. The bill also allows governmental bodies to elect to implement this automatic enrollment feature and permits the state treasurer to seek private donations or grants to reduce operating expenses for the plan. Additionally, the bill removes a previous restriction limiting the program to organizations employing 20 or fewer persons, thereby expanding potential participation.

Labor and Employment

https://malegislature.gov/Bills/194/H2825