SCS/HCS/HB 1732 - This act establishes new provisions relating to retirement savings plans for private-sector employees. This act is substantially similar to SB 1125 (2022), SB 1213 (2022), a provision in SCS/HB 2571 (2022), and SB 298 (2021).
THE MISSOURI WORKPLACE RETIREMENT SAVINGS PLAN
(Sections 285.1010-285.105 and 285.1050-285.1055)
The act creates the Missouri Workplace Retirement Savings Plan, which is a multi-employer retirement plan. The plan is to be designed, developed, and implemented by the Missouri Workplace Retirement Savings Board in accordance with the limitations and requirements set forth by the act. Each eligible employee may opt-in to contribute a minimum of one percent or any percentage, up to the maximum, in increments of one-half of one percent, of his or her salary or wages to the plan, or may, at a later date, elect to opt-out of the plan or may contribute at a higher or lower rate, expressed as a percentage of salary or wages. The Board is permitted to provide for an annual increase in the contribution amount of each employee. Such increase shall be by not less than 0.5% per year. The plan is required to be fully implemented no later than September 1, 2024.
An annual audit is required to be conducted of the Missouri Workplace Retirement Savings Plan, the Missouri Workplace Retirement Savings Board, and the trust in which the assets of the plan are held. Such audit shall be completed by a certified public accountant and be submitted to the Governor, Treasurer, President Pro Tem of the Senate, and Speaker of the House of Representatives.
THE MISSOURI WORKPLACE RETIREMENT SAVINGS BOARD
(Sections 285.1005, 285.1020, and 285.1040)
The act creates the Missouri Workplace Retirement Savings Board within the State Treasurer's office, of which the State Treasurer shall be the chair. With the exception of the Treasurer, all members of the Board are appointed by the Governor, the President Pro Tem of the Senate, or the Speaker of the House of Representatives. Such members shall serve at the pleasure of the appointing authority, but in no event longer than four years.
The Board is required to conduct outreach to individuals, employers, stakeholders, and the public in general about the program. Such outreach shall include informing them of the benefits of tax-favored retirement saving and other information, as specified in the act.
The Board is permitted to enter into intergovernmental memoranda of understanding with the state and any agency of the state for the purpose of services needed to implement the plan.
LIABILITY OF EMPLOYERS AND THE BOARD
(Sections 285.1025 - 285.1030)
The act provides that no employer shall be liable, or bear responsibility, for an employee's decision to participate in the plan or for any result, decision, or action as a result of an employee participating in the plan.
Furthermore, the act exempts certain public entities from liability for any loss, deficiency, failure to realize gain, or other adverse consequences incurred as a result of participation in the plan by an employee.
NONDISCLOSURE OF INDIVIDUAL ACCOUNT INFORMATION
The act provides that certain individual account information under the plan shall be confidential and may only be disclosed as otherwise required under state or federal law, or at the request of the individual.