Bill > H4248

This bill establishes the Massachusetts Secure Choice Savings Program, a state-administered retirement savings initiative for private-sector employees who work for companies with 25 or more employees that do not currently offer a retirement plan. The program will automatically enroll eligible employees in an Individual Retirement Account (IRA) with a default contribution rate of 6% of wages, which can escalate to 10%, unless employees choose to opt out or select a different contribution level. A five-member board, including state officials and public representatives, will provide fiduciary oversight of the program. Employers will be required to facilitate payroll deductions for employee contributions, with potential penalties for non-compliance, ranging from $250 to $500 per employee per year if they fail to enroll eligible workers. The program aims to provide a convenient, low-cost, and portable retirement savings option for private-sector workers who do not currently have access to employer-sponsored retirement plans. The state treasurer will design and administer the program, with the ability to contract with investment managers and establish investment options. Importantly, the bill explicitly states that the commonwealth, the board, and participating employers will not be liable for investment performance or individual tax consequences, and employers retain the option to establish their own retirement plans instead of participating in this state-run program.

https://malegislature.gov/Bills/194/H4248