House Bill 5591 was introduced by the Labor & Public Employees Committee on March 3rd, 2016 and approved by the House on April 27th 2016. The Senate ratified the amended bill on May 3rd, 2016 and Public Act 16-29 was signed into law on May 27th, 2016.
Automatic enrollment to a state-sponsored Roth or traditional IRA program; default 3% contribution rate and auto-escalation yet to be determined.
Employers with more than five (5+) W2 employees above the age of 19, who have been employed for at least 120 days, and paid more than $5,000 in a calendar year must either enroll in the state’s IRA program, or they must opt out and have another eligible program such as an employer sponsored 401(k) plan.
Automatic enroll employees at 3% deferral of the enrollee’s wages.
|October 31, 2022||Employers with 25+ employees|
|March 30, 2023||Employers with 5+ employees|
|June 28, 2023||5 - 24 Employees , $500|
|January 10, 2023||25 - 99 Employees, $1,000|
|January 10, 2023||100+ Employees, $1,500|
The program offers a suite of 12 target date funds (TDFs), as the default investment option, and additional investment options - including cash preservation, income, income & growth, balanced funds as well as conservative, moderate or growth portfolios.