,,ii #aadth ,,congress #b;d ,session ,s4 #cchi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #bb1 #bjaf,mr4 ,heinrich introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to authorize ,state-sponsored multiple employer plans and ,state payroll deduction savings programs4 #a4 ,short title ,this ,act may be cited as the ,state ,retirement ,savings ,act of #bjaf4 #b4 ,state-sponsored multiple employer plans ,part #b of title ,i of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajaea et seq47 is amended by adding at the end the following3 #bab4 ,state-sponsored multiple employer plans 7a7 ,in general ,any ,state may establish a plan described in section #baj7;a74 ,such plan shall not be considered a governmental plan solely because it is established and administered by a ,state1 provided the plan is in compliance with the requirements of this section4 7b7 ,requirements ,a ,state multiple employer plan shall-- 7#a7 be established by a ,state pursuant to ,state law2 7#b7 be open to all employers in the ,state2 7#c7 not require participation from any employer1 including any employer described in section #dja7;c77#d7 of the ,internal ,revenue ,code of #aihf2 7#d7 be subject to all requirements of this ,act that apply to a plan described in section #baj7;a72 and 7#e7 provide for an opt-out for all employees of a participating employer1 if the plan provides for automatic enrollment4 7c7 ,plan sponsor1 fiduciary1 and administrator ,the plan sponsor1 named fiduciary1 and plan administrator of a ,state-sponsored plan described in subsection 7a7 shall be the ,state4 7d7 ,enrollment of individual employees 7#a7 ,in general ,a ,state multiple employer plan may enroll individuals directly in such plan1 if such individuals are employed by employers who do not participate in the ,state plan4 7#b7 ,employer participation ,the ,state plan shall not require employer participation in the form of contributions1 bonuses1 or monetary incentives in the case of individual employee participation under paragraph 7#a74 7e7 ,tax treatment 7#a7 ,treatment of contributions ,contributions made to a ,state multiple employer plan shall be treated in the same manner for purposes of section #dja of the ,internal ,revenue ,code of #aihf as contributions to any other multiple employer plan described in section #baj7;a74 7#b7 ,treatment of plan ,a ,state plan described in subsection 7a7 shall be treated as a plan subject to section #dac7;c7 of the ,internal ,revenue ,code of #aihf4 4 #c4 ,certain ,state savings programs 7a7 ,in general ,a ,state may establish and maintain a ,state payroll deduction savings program 7referred to in this section as a program7 that provides individual retirement plans 7as defined in section #ggja7;a77#cg7 of the ,internal ,revenue ,code of #aihf74 ,such plan shall not be considered an employee pension benefit plan under section #c7b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7b771 provided that-- 7#a7 the program is established by a ,state pursuant to ,state law2 7#b7 the program is implemented and administered by the ,state establishing the program1 and such ,state is responsible for investing the employee savings or for selecting investment alternatives for employees to choose2 7#c7 the ,state assumes responsibility for the security of payroll deductions and employee savings2 7#d7 the ,state adopts measures to ensure that employees are notified of their rights under the program1 and creates a mechanism for enforcement of such rights2 7#e7 participation in the program is voluntary for employees2 7#f7 all rights of the employee1 former employee1 or beneficiary under the program are enforceable only by the employee1 former employee1 or beneficiary1 an authorized representative of such a person1 or by the ,state2 7#g7 except for employer contributions allowed under subsection 7b71 the involvement of the employer is limited to-- 7,a7 collecting employee contributions through payroll deductions and remitting them to the program2 7,b7 providing notice to the employees and maintaining records regarding the employer's collection and remittance of payments under the program2 7,c7 providing information to the ,state necessary to facilitate the operation of the program2 and 7,d7 distributing program information to employees from the ,state and permitting the ,state or such entity to publicize the program to employees2 7#h7 the employer's participation in the program is required by ,state law2 7#i7 the employer has no discretionary authority1 control1 or responsibility under the program2 and 7#aj7 the employer receives no direct or indirect consideration in the form of cash or otherwise1 other than the reimbursement of the actual costs of the program to the employer of the activities described in paragraph 7#h74 7b7 ,employer contributions to an employee account in a ,state savings program2 financial incentives allowed ,a ,state savings program described in subsection 7a7-- 7#a7 may permit an employer to contribute funds to an employee's account under the payroll deduction savings program1 and need not require an employer to make contributions to employee accounts1 provide bonuses1 or other monetary incentives to employees to participate in the program2 7#b7 may permit an employer to provide bonuses or other monetary incentive to employees to participate in the program2 7#c7 may be offered to employees who are already eligible for some other workplace savings arrangement2 7#d7 may utilize one or more service or investment providers to operate and administer the program1 provided that the ,state retains full responsibility for the operation and administration of the program2 and 7#e7 shall treat employees as having automatically elected payroll deductions in an amount or percentage of compensation1 including any automatic increases in such amount or percentage1 specified under ,state law until the employee specifically elects not to have such deductions made 7or specifically elects to have the deductions made in a different amount or percentage of compensation allowed by the program71 provided that the employee is given adequate notice of the right to make such elections1 and need not provide for the automatic deductions4 7c7 ,definitions ,for purposes of this section-- 7#a7 the term ,state has the meaning given such term in section #c of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb71 and1 in the case of a ,state that has not established a ,state payroll deduction savings program described in subsection 7a71 includes any qualified political subdivision of a ,state2 and 7#b7 the term qualified political subdivision means any governmental unit of a ,state1 including a city1 county1 or similar governmental body1 that-- 7,a7 has the implicit or explicit authority under ,state law to require employer participation in a retirement savings account program described in subsection 7a72 and 7,b7 has a population equal to or greater than the population of the least populated of the #ej ,states 7excluding the ,district of ,columbia and the territories74 7d7 ,clarification ,section #c7b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7b77 is amended by adding at the end the following3 7,c7 ,a ,state payroll deduction savings program established in accordance with section #c of the ,state ,retirement ,savings ,act of #bjaf is not an employee pension benefit plan or pension plan for purposes of this title4 4