Advocacy News – March 7, 2024
Did you know? According to the Survey of Consumer Finances, nearly half of American households had no money in retirement savings in 2022.
In response, the federal government, and many states across the U.S., have started to consider requiring private sector businesses to offer a retirement savings opportunity to employees or enroll employees in a state-administered program. Michigan is now one of those states contemplating the idea.
House Bill 5461, also referred to as the MI Secure Retirement Act, sponsored by Representative Mike McFall (D-Hazel Park), would automatically enroll employees working for a business or non-profit without a retirement savings program into a state-administered retirement savings program (unless the employee opts-out).
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The legislation would require businesses to enroll interested employees and to automatically deduct an amount designated by a participating employee (up to 15%).
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If signed into law, businesses would have 24 months to comply.
To oversee the program, the legislation creates the Secure Retirement Savings Board.
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The Board would determine minimum, maximum, and default contribution rate, the annual escalation rate, the collection and publishing of information and data related to the program as well as determine compliance timeline for an employer with a participating employee.
We want to know your thoughts! Please contact Leah Robinson at LRobinson@michamber.com to share your business’ feedback on the proposal.