AN ACT TO CREATE THE MISSISSIPPI WORK AND SAVE PROGRAM, WHICH IS A RETIREMENT SAVINGS PROGRAM SPONSORED BY THE STATE FOR CERTAIN EMPLOYERS WHO DO NOT ALREADY OFFER A RETIREMENT PLAN THAT WILL ALLOW THOSE EMPLOYERS TO OFFER ELIGIBLE EMPLOYEES THE CHOICE TO CONTRIBUTE TO AN INDIVIDUAL RETIREMENT ACCOUNT (IRA) THROUGH A PAYROLL DEDUCTION; TO PROVIDE THE POWERS, AUTHORITY AND DUTIES OF THE STATE TREASURER TO DESIGN, DEVELOP AND IMPLEMENT THE PROGRAM; TO PROVIDE THAT THE IRA TO WHICH CONTRIBUTIONS ARE MADE WILL BE A ROTH IRA AND THE STANDARD PACKAGE WILL BE A ROTH IRA WITH A TARGET DATE FUND INVESTMENT AND A SPECIFIED CONTRIBUTION PERCENTAGE; TO PROVIDE CERTAIN PROTECTION FROM LIABILITY FOR EMPLOYERS IN THE PROGRAM AND FOR THE STATE; TO PROVIDE FOR THE CONFIDENTIALITY OF PARTICIPANT AND ACCOUNT INFORMATION; TO CREATE THE MISSISSIPPI WORK AND SAVE ADMINISTRATIVE FUND AS A SPECIAL FUND IN THE STATE TREASURY FOR THE PURPOSES AUTHORIZED IN THIS ACT; AND FOR RELATED PURPOSES.
Impact
This legislation is intended to bolster retirement savings among Mississippi citizens who struggle with inadequate savings for retirement. By encouraging participation in individual retirement accounts, it aims to enhance financial security for households, ultimately reducing potential burdens on state public assistance programs for retirees. The State Treasurer is tasked with overseeing the program's development, implementation, and operation, ensuring low fees and efficient management of contributions and investments to benefit the participants.
Summary
House Bill 631, known as the Mississippi Work and Save Program, aims to create a state-sponsored retirement savings program for employees of certain employers who do not currently provide a retirement plan. The bill allows these employers to offer eligible employees the option to contribute to an individual retirement account (IRA) through payroll deductions. The proposed program would primarily utilize Roth IRAs and is designed to enhance retirement savings opportunities for working families throughout Mississippi, particularly targeting moderate to lower-income households who may lack access to traditional employer-sponsored retirement plans.
Contention
Key points of contention surrounding HB631 could include concerns about liabilities assigned to employers, as protections are outlined to shield them from repercussions regarding employee participation decisions or investment performance. Additionally, some may question the effectiveness of the program in truly increasing retirement savings among participants given that employees must opt in to the program, potentially leaving some unengaged. The requirement for periodic reports and audits may also invoke scrutiny about how well the program meets its objectives and the impact of fees on participants' savings growth.
CTE; remove stipulation that only certain programs leading to industry certification are considered for the statewide accountability system and diploma endorsements.