Bill > HB5336

This bill establishes the Michigan Secure Retirement Savings Program, a state-facilitated retirement savings program designed to provide automatic enrollment Individual Retirement Accounts (IRAs) for private-sector employees whose employers do not currently offer a qualified retirement plan. The program will automatically enroll eligible employees (those 18 and older) in a payroll deduction IRA, with the ability to opt out or adjust contribution levels, and aims to maximize participation, simplicity, and investment efficiency. A dedicated Secure Retirement Savings Board will administer the program, creating a trust fund outside the state treasury that holds individual employee accounts, with investment earnings and losses allocated to individual accounts. Participating employers will be required to facilitate payroll deductions, but will not be liable for investment decisions or program performance. The bill includes provisions for establishing contribution rates (with a maximum default rate of 15%), creating informational packets for employers and employees, setting up a website to help employers find retirement plan options, and implementing penalties for employers who fail to enroll eligible employees. Importantly, the state is not financially liable for the retirement benefits, and the program is designed to be a low-cost, portable retirement savings option for workers without existing retirement plans.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5336