House Bill 1349
Introduced House Bill (H)
DIGEST
Hoosier employee retirement options portal. Establishes the Hoosier employee retirement options portal (portal) for the purpose of connecting eligible employers and their employees with approved retirement plans to increase the employees' retirement savings. Establishes the Hoosier employee retirement options portal board (board) consisting of seven members: (1) the securities commissioner; (2) the auditor of state; (3) the treasurer of state; and (4) four members appointed by the governor, including two members with knowledge, skill, and expertise in retirement savings plan administration or investments, or both; one member who is an attorney admitted to practice law in Indiana with knowledge, skill,
Hoosier employee retirement options portal. Establishes the Hoosier employee retirement options portal (portal) for the purpose of connecting eligible employers and their employees with approved retirement plans to increase the employees' retirement savings. Establishes the Hoosier employee retirement options portal board (board) consisting of seven members: (1) the securities commissioner; (2) the auditor of state; (3) the treasurer of state; and (4) four members appointed by the governor, including two members with knowledge, skill, and expertise in retirement savings plan administration or investments, or both; one member who is an attorney admitted to practice law in Indiana with knowledge, skill,
and expertise in federal labor, retirement, or tax law; and one member affiliated with a consumer advocacy organization. Provides that the securities commissioner serves as chairperson of the board. Requires the board, not later than June 30, 2017, to design a plan for the operation of the portal and propose standards for the approval of retirement plans to be available through the portal. Requires the board, not later than December 31, 2018, to begin accepting applications from financial services firms that desire to provide retirement plans through the portal. Requires a firm to be licensed or hold a certificate of authority and be in good standing in Indiana and meet all federal laws and regulations to offer retirement plans through the portal. Requires each financial services firm participating in the portal to offer a minimum of a target date fund and a balanced fund as investment options. Requires the board to activate the portal when the board has approved retirement plans from two financial services firms. Requires the portal to provide a range of investment options to meet the needs of investors of various ages and with various levels of risk tolerance. Provides that an employer's participation in a plan offered through the portal is voluntary. Provides that an employer that offers a plan must automatically enroll all employees qualified to participate in the plan at a default contribution rate of 3%. Requires that an employee automatically enrolled in a plan must have the option to waive or terminate participation and increase or decrease the employee's contribution percentage. Provides that a plan's default investment option must be a target date fund. Provides that an employee must be able to rollover the employee's account in the plan to an individual retirement account or other eligible plan if the employee ceases participation in the plan. Allows the board to contract with a private sector entity to design, implement, and operate the portal. Establishes the Hoosier employee retirement options portal administrative fund to pay the expenses of the portal. Requires that the administrative fund must be self-sustaining and allows the board to use private funding sources, including private foundation grants, for starting-up, operating, and marketing of the portal. Requires a financial services firm to pay an annual fee of $5,000 to the administrative fund as a condition of participation in the portal. Provides that the state of Indiana may not have any liability under ERISA as the result of the board's administration of the portal. Requires biennial reports to the general assembly concerning the effectiveness and efficiency of the portal.
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