Bill > H1226

This bill establishes two retirement savings programs in Massachusetts: the Secure Choice Individual Retirement Account Program (IRAP) and the Secure Choice Multiple-Employer Retirement Account Program (MERP). The legislation creates a seven-member Secure Choice Retirement Savings Board to develop and manage these programs, which are designed to provide retirement savings options for employees of eligible employers who do not currently offer retirement plans. The IRAP will be a voluntary program with automatic enrollment and opt-out provisions, allowing employees to contribute through payroll deductions, while the MERP will be a qualified 401(a) profit-sharing plan that permits both employee and employer contributions. The bill mandates that eligible employers automatically enroll their employees in the IRAP unless they already offer a qualified retirement plan, with implementation phased in based on company size over a period of months starting January 1, 2020. Key protections include limiting employer liability, keeping administrative expenses under 1% of the total trust balance, and ensuring the programs are not guaranteed by the state. The Board will have broad powers to establish investment options, set contribution levels, and manage the programs, with an emphasis on professional management, pooled investments, and risk mitigation. Employers will be subject to penalties for non-compliance, and the Attorney General is authorized to enforce the provisions of the act.

Budget and Finance, Business and Industry

https://malegislature.gov/Bills/194/H1226