Bill > H2824

This bill modifies the Massachusetts SMART Plan (a deferred compensation program) to allow for an automatic enrollment feature for new state employees and governmental bodies, effective June 1, 2022. The bill changes terminology from "independent contractors" to "contracted employees" and introduces several key provisions for automatic enrollment, including: allowing enrollment without prior employee authorization as an exception to existing wage laws, applying only to new employees, permitting a maximum deferral percentage consistent with IRS safe harbor rules, automatically increasing deferred compensation annually (with an opt-out option), providing a 90-day window for employees to discontinue participation with a full refund, establishing a default investment option for participants who don't choose their own investment, and requiring appropriate notice in accordance with IRS regulations. The bill gives governmental bodies the discretion to implement this automatic enrollment feature, with specific provisions ensuring employee flexibility and protecting their financial interests while potentially increasing participation in the deferred compensation program.

Labor and Employment

https://malegislature.gov/Bills/194/H2824