Mississippi May Join State Program Club

A bill before the Mississippi House of Representatives would establish a state-run retirement plan to provide coverage for private-sector employees whose employers do not offer one. 

Rep. Orlando Paden (D-Bolivar) on Jan. 24, 2024 introduced House Bill 599, the Mississippi Secure Choice Savings Program Act.

The bill would establish the Mississippi Secure Choice Savings Program, through which automatic payroll deductions would be taken from participants’ compensation and put into an IRA. 

The bill would create the Mississippi Secure Choice Savings Board. It would have five members, which would include: 

• the State Treasurer, or his or her designee, who would serve as chair; 
• the State Fiscal Officer, or his or her designee; 
• a representative of the public with expertise in retirement savings plan administration or investment, or both, appointed by the Governor; 
• a representative of participating employers, appointed by the Governor; and 
• a representative of enrollees, appointed by the Governor.

The bill also would establish the board’s duties and role, which would include: 

• overseeing the design and operation of the program;
• engaging investment managers to invest program funds; 
• establishing investment options for enrollees;
• designing and providing information packets for employers and employees; 
• appointing a trustee to the IRA fund ;
• exploring and establishing investment options that offer employees returns on contributions and the conversion of individual retirement savings account balances to secure retirement income without incurring debt or liabilities to the state;
• establishing the process by which interest, investment earnings, and investment losses are allocated to individual program accounts on a pro rata basis and are computed at the interest rate on the balance of an individual's account;
• making and entering into contracts necessary for the administration of the program and fund;
• reviewing the performance of any investment vendors every four years.

The measure also calls for the creation of the Mississippi Secure Choice Administrative Fund, which would cover the board’s expenses. 

Effective date. If it is enacted, the measure will be effective on July 1, 2024. 

Status. The bill was referred to two House committees: the Business and Commerce and the Ways and Means Committee.