Creating WisEARNS and making an appropriation. (FE)
Impact
The introduction of WisEARNS will enable many employees, particularly those working for small businesses without retirement plans, to start saving for retirement. The bill includes provisions that allow for payroll deductions at an initial rate of 5%, which can increase annually, providing a structured method for employees to enhance their savings. It also introduces significant tax credits for small businesses that establish retirement plans or implement automatic enrollment. These credits aim to alleviate the financial burden of setting up retirement plans, thereby incentivizing participation by more employers.
Summary
Senate Bill 1076 establishes a new retirement savings program known as WisEARNS, targeting employees of private employers that do not offer an employer-sponsored retirement plan. This bill facilitates a defined contribution retirement plan, where retirement benefits are reliant on individual account balances rather than a predetermined formula. The legislation mandates the creation of a WisEARNS Board attached to the Office of the State Treasurer, responsible for overseeing the program and its operations. The board will ensure employee participation by requiring automatic enrollment into the plan while allowing employees to opt out before contributions are deducted from their paychecks.
Contention
A point of contention relating to SB1076 centers on the automatic enrollment requirement. While proponents argue that this will increase retirement savings among workers who might otherwise not participate, critics may raise concerns about the potential burden it places on employers. Additionally, there are worries regarding the lack of employer contributions to employee WisEARNS accounts, which some might argue limits the incentive for employees to save. The implementation timeline and the administrative responsibilities placed on the employers and the WisEARNS Board are also potential areas for disagreement.
Creating a tax credit for expenses related to film production services and for capital investments made by a film production company, granting rule-making authority, and making an appropriation. (FE)
Creating a tax credit for expenses related to film production services and for capital investments made by a film production company, granting rule-making authority, and making an appropriation. (FE)