What’s Going on in the States?

This new feature in the NTSA Advisor provides a look at what’s going on in the states and the most recent developments in their activity to provide and enhance retirement plan coverage. 

 

Nevada Could Join State Plan Club

Private-sector employees in the Silver State whose employers do not offer a retirement plan could be covered by a state plan, if a bill now before the state Senate is passed and enacted. 

Senate Chief Majority Whip Dallas Harris (D-Clark County) on March 16 introduced SB 305, a measure that would establish the Nevada Employee Savings Trust. 

Employer Role. Employers would be required to:

• automatically enroll all covered employees;
• withhold contributions from employees’ compensation for each covered employee’s IRA created under the program; and 
• distribute informational  materials,  disclosure  statements,  forms  and  instructions  concerning the program to covered employers to covered employees.
   

Employees. Employees would be able:

• to change the rate at which their contributions are withheld from their compensation;
• withdraw up to $1,000 in order to meet a financial emergency or other kind of emergency; and
• opt out of participation.

Board of Trustees of the Nevada Employee Savings Trust. The bill would create a Board of Trustees of the Nevada Employee Savings Trust, which would:

• design, establish and operate the Nevada Employee Savings Trust Program;    
• adopt  regulations, rules, and procedures for the establishment and operation of the program; 
• appoint a Trustee of the Trust; and 
• prepare informational  materials, disclosure statements, forms and instructions concerning the program for distribution by covered employers to covered employees.

State Treasurer. SB 305 would require the State Treasurer to provide staff and administrative support to the Board.

Status. The bill is now before the Senate Committee on Government Affairs.

 

Missouri State-Run Multiple-Employer Retirement Savings Plan Progresses in House 

 

A bill that would create a state-run multiple-employer retirement savings plan in the Show Me State is moving through the state House of Representatives toward consideration by the full chamber.

The measure, which Rep. Michael O’Donnell (R-St. Louis) introduced on Jan. 4, had been referred to two House committees: Pensions, and Rules-Regulatory Oversight. The Pensions Committee passed the bill on March 8 in a 9-0 vote; the Rules-Regulatory Oversight Committee followed suit in a 10-0 vote on March 22. 

About the Bill. HB 155 would establish the Show-Me MyRetirement Savings Administrative Fund, a multiple-employer retirement saving plan that would be treated as a single plan under Title I of ERISA and Internal Revenue Code Sections 401(a), 401(k), and 413(c). Multiple employers would be able to voluntarily choose to participate regardless of whether any relationship exists between and among the employers other than their participation in the plan. 

The committee report about the bill notes that:

Supporters say that over 40% of Missouri workers have no access to retirement savings through their employers. In addition, the workers may not have a pension or retirement pension plan. Lumping businesses together to make it affordable to offer the savings plan through the State Treasurer's Office (STO) also achieves economies of scale and reduces expenses to the employer. The STO would administer the Plan. This bill seeks to provide for more Missourians to take personal responsibility for their future and to save for retirement. The bill presents a good plan for Missouri businesses, including small businesses, and provides savings opportunities to employees and retention advantages. An employee would have the option to do automatic increases into the plan. The bill offers a payroll deduction and allows for percentage increases and allows for an employer match. Other states such as California, Illinois and New Mexico currently have this plan.

The committee report did not cite any statements against the bill. 

Finding out More. The bill is available here: https://www.house.mo.gov/BillContent.aspx?bill=HB155&year=2023&code=R

A committee report on the bill is available here: https://www.house.mo.gov/billtracking/bills231/sumpdf/HB0155C.pdf 

 

ABLE Accounts Could Be New Option for Oregon Employees

If a measure before the Oregon Senate becomes law, ABLE accounts would be added to the options available to employees in Oregon. If enacted, the new option would be available beginning Jan. 1, 2025. 
 

SB 571 provides that if an employer offers or provides contributions to employee retirement accounts, the employer would offer employees the option to receive equal contributions to ABLE accounts — which are tax-advantaged savings programs for eligible people with disabilities — in lieu of contributions to employee retirement accounts. That includes OregonSaves — the bill also provides that an employer that offers employees the opportunity to contribute to an OregonSaves account through payroll deductions also would offer employees the option of directing such deductions to an ABLE account instead of an OregonSaves account.

The bill states that the Oregon Retirement Savings Board, the Oregon 529 Savings Board, and the State Treasurer: 

• may take any action before Jan. 1, 2025 that is necessary to make those ABLE accounts available; 
• shall adopt any necessary rules;
• shall provide information to specified persons of their ABLE account options; and 
• would establish a process to direct payroll deductions to an ABLE account in lieu of an OregonSaves account. 

SB 571 also provides that the Treasurer, in collaboration with the Oregon Retirement Savings Board and the Oregon 529 Savings Board, shall: 

• identify individuals who are making contributions to an OregonSaves account and are also beneficiaries of an ABLE account and notify those individuals of the options required under subsections (1) and (2) of this section; 
• regularly provide information to individuals who are beneficiaries of an ABLE account regarding the potential impact of an employee retirement account on the individual’s access to services and potential advantages of the options required under subsections (1) and (2) of this section; and 
• establish a process to allow employers to direct employee payroll deductions to an ABLE account instead of an OregonSaves account. 

Status. Sen. Sara Gelser Blouin (D-Benton County) introduced the bill, which is now before the Senate Committee on Labor and Business.