A bill that would create a state-run multiple-employer retirement savings plan in the Show Me State is moving through the state House of Representatives toward consideration by the full chamber.
The measure, which Rep. Michael O’Donnell introduced on Jan. 4, had been referred to two House committees: Pensions, and Rules-Regulatory Oversight. The Pensions Committee passed the bill on March 8 in a 9-0 vote; the Rules-Regulatory Oversight Committee followed suit in a 10-0 vote on March 22.
About the Bill
HB 155 would establish the Show-Me MyRetirement Savings Administrative Fund, a multiple-employer retirement saving plan that would be treated as a single plan under Title I of ERISA and Internal Revenue Code Sections 401(a), 401(k), and 413(c). Multiple employers would be able to voluntarily choose to participate regardless of whether any relationship exists between and among the employers other than their participation in the plan.
The committee report about the bill notes that:
Supporters say that over 40% of Missouri workers have no access to retirement savings through their employers. In addition, the workers may not have a pension or retirement pension plan. Lumping businesses together to make it affordable to offer the savings plan through the State Treasurer's Office (STO) also achieves economies of scale and reduces expenses to the employer. The STO would administer the Plan. This bill seeks to provide for more Missourians to take personal responsibility for their future and to save for retirement. The bill presents a good plan for Missouri businesses, including small businesses, and provides savings opportunities to employees and retention advantages. An employee would have the option to do automatic increases into the plan. The bill offers a payroll deduction and allows for percentage increases and allows for an employer match. Other states such as California, Illinois and New Mexico currently have this plan.
The committee report did not cite any statements against the bill.
Finding out More
The bill is available here: https://www.house.mo.gov/BillContent.aspx?bill=HB155&year=2023&code=R
A committee report on the bill is available here: https://www.house.mo.gov/billtracking/bills231/sumpdf/HB0155C.pdf