Wisconsin Senate Bill SB1035

Wisconsin 2023-2024 Regular Session

• Introduced: 2/19/24
• Refer: 2/19/24
• Failed: 4/15/24

Caption

A retirement plan marketplace, granting rule-making authority, and making an appropriation. (FE)

Impact

The impact of SB1035 is significant as it addresses the gaps in retirement plan accessibility for workers in small companies. By creating a centralized marketplace, the state seeks to encourage both individuals and small employers to participate in retirement planning. This legislative move is expected to simplify the process for small businesses by providing clear options and reducing barriers to offering retirement plans, ultimately aiming to increase the overall retirement savings rate among residents.

Summary

Senate Bill 1035 aims to establish a retirement plan marketplace within the state to enhance access to retirement savings options for individuals and small employers. The bill mandates the Department of Financial Institutions (DFI) to create and manage this online marketplace, which will connect eligible individuals and employers with approved financial services firms offering ERISA-compliant retirement plans. The initiative is designed to foster an environment where individuals, particularly those working for smaller employers with fewer than 100 employees, can find suitable retirement plans tailored to their needs.

Contention

Despite its benefits, the bill may face contention regarding the regulatory oversight of the financial services firms that will offer plans on the marketplace. Concerns have been raised about ensuring these firms maintain compliance with standards set forth by ERISA while providing cost-effective options. Additionally, there are discussions surrounding the administrative fees charged by participating firms; the bill caps these fees at no more than 100 basis points, aiming to protect consumers from excessive costs while ensuring that financial firms can still offer their services effectively.