Bill > HB2649

This bill establishes the Kansas Empowerment Savings Program Act, creating a board of trustees within the state treasurer's office to oversee a new retirement savings program. This program will allow eligible employees, defined as individuals 18 or older, employed for at least 90 days, and earning taxable wages, to contribute to individual retirement accounts (IRAs) through automatic payroll deductions. Employers, defined as businesses with at least five employees that have been operating for a year and haven't offered a qualified retirement plan in the past two years, will be required to facilitate these deductions. The program aims to promote retirement savings by automatically enrolling employees at a 5% contribution rate, though individuals can opt out or adjust their contribution level. The board will contract with investment managers and administrators, set fees, develop investment options like a life cycle fund, and ensure the program is simple, portable, and cost-effective, with a goal of keeping total annual fees below 1% of program assets for the first three years. The state will not be liable for retirement benefits or investment losses, and employee contributions are not considered state property. The program is set to become effective on July 1, 2027.

Labor and Employment

Financial Institutions and Pensions (H)

https://kslegislature.gov/li/b2025_26/measures/hb2649/