Bill > H1143

This bill establishes the Massachusetts Secure Choice Savings Program, a state-run retirement savings program designed to help private-sector employees who lack access to employer-sponsored retirement plans. The program will automatically enroll eligible employees in individual retirement accounts (IRAs) through payroll deductions, with a default contribution rate and investment option that employees can modify or opt out of entirely. The program will be overseen by a seven-member board consisting of state officials and appointed representatives, who will be responsible for designing the program, selecting investment options, managing administrative costs, and ensuring compliance with federal tax regulations. Employers with five or more employees who have not offered a qualified retirement plan in the past two years will be required to participate by establishing a payroll deposit arrangement, though they will not be liable for investment decisions or program performance. The program aims to provide a convenient, low-cost retirement savings option for workers, with investment choices including a life-cycle fund, principal protection fund, and other potential options. Participating employers who fail to enroll employees could face penalties, and the program is designed to be self-sustaining through administrative fees and investment returns, with no direct financial liability for the state. The bill emphasizes that the program is not an employer-sponsored retirement plan and that the state does not guarantee investment returns.

Budget and Finance, Business and Industry

https://malegislature.gov/Bills/194/H1143