Grant’s Go-To’s: Mid-year State of the States
At Massena Associates, we keep close tabs on retirement savings initiatives across the U.S. 2021 has been a particularly busy year. By my count, we’ve seen 23 state (and municipal) legislative proposals for State-Facilitated Retirement Savings Programs (SFRPs).
Some proposals have already been enacted. Some have passed the legislative process and are awaiting a Governor’s signature. Other proposals are still making their way through the legislative process, and some appear to be on ice for this year. What follows is a mid-year summary of the current status of the proposals we’ve been following.
As you continue reading, here are my caveats. Because of the dynamic nature of the legislative process, and the subtle nuances that vary from state-to-state, I may miss something!
Got updates? Please say so. You can get me at: grant.boyken@massenaassociates.com. We welcome your feedback and updates.
Signed into law: Two Auto IRA SFRP proposals and one proposal to amend an existing program. In Virginia, Governor Northam signed HB 2174 in April. The new law directs the Virginia College Savings Plan to establish the VirginiaSaves Auto IRA Program. In May, New York City’s Mayor De Blasio signed a City Council bill establishing an auto IRA program for city workers who do not have access to savings plans at work. New Mexico’s Governor Grisham signed SB 129 into law on March 5, extending the deadline for implementing the New Mexico Work and Save’s retirement savings marketplace from January 1, 2022 to July 1, 2024. (Late breaking, we are excited to add the state of Maine to this list as well, following the Governor’s signature).
Passed pending Governor: One auto IRA proposal and two program expansion proposals. On June 17, 2021, the Maine Legislature passed LD 1622 which establishes the Maine Retirement Savings auto IRA program. (this one is now signed).
In Illinois, HB 117 was passed in May. The bill would reduce the mandatory participation threshold for the Illinois Secure Choice Retirement Savings Program from employers with more than 20 employees to those with at least 5 employees. In May, the New York State Legislature approved AB 3213 which would add automatic enrollment to the New York Secure Choice Savings Program.
Active: One state’s hybrid (MEP/IRA) proposal, two IRA SFRP proposals, and one study proposal. Three bills in Massachusetts (HB 1138, SB 653, HB 1067) would establish a Secure Choice Program as a hybrid with both Auto IRA and ERISA Multiple Employer Plan programs. North Carolina’s HB 899 would create the Small Business Retirement Savings Program as an IRA program that is voluntary for covered employers. The bill does not specify automatic enrollment for covered employees. In Delaware, HB 205, which would establish the Expanding Access for Retirement and Necessary Savings (EARNS) auto-IRA program, was introduced in May. Hawaii’s SR 76 would convene a Retirement Savings Program task force to assess the feasibility of establishing a savings program for private sector workers who lack assess to workplace plans.
And, thirteen 2021 SFRP legislative proposals that did not pass through this year. It’s true, these processes take time, and the effort to get laws passed generally makes them better in the end.
Auto IRAs:
· Idaho (HO 180)
· Indiana (HR 31)
· Kansas (HB 2378)
· Mississippi (HB 704)
· Nevada (SB 200)
· Rhode Island (SB 640)
· Texas (HB 2996)
Multiple Employer Plans (MEPS)
· Arkansas (HB 1295)
· Missouri (HB 1229)
Hybrid / Unspecified
· Iowa (HF 189) – does not explicitly specify MEP or IRA
· Minnesota (HF 1258; SB 976) – MEP/IRA Hybrid
Study Bills
· Georgia (SR 129)
· Montana (LC 0036)
Want to know more? Give us a ring!
In our next edition, you’ll get some fresh updates on best practices and continued progress in the retirement savings innovation space.
Stay tuned! - Grant
This piece was featured in the July 1, 2021 edition of Retirement Security Matters. For more fresh thinking on retirement savings innovation, check out the newsletter here.
