SB70,,6687 (c) “Eligible employee” means an individual who resides in this state and who is any of the following:

SB70,,6688 1. Employed by a private employer that does not offer a retirement savings plan.

SB70,,6689 2. Employed by a private employer and not eligible to participate in a retirement savings plan offered by the private employer.

SB70,,6690 (d) “Investment administrator” means the vendor with which the board has contracted under sub. (2) (b).

SB70,,6691 (e) “Participating employer” means a private employer that qualifies for and has elected to participate in the program as provided in sub. (4) (a).

SB70,,6692 (f) “Roth IRA” has the meaning given in 26 USC 408A (b).

SB70,,6693 (g) “Traditional IRA” means an individual retirement account under 26 USC 408.

SB70,,6694 (2) Establishment of program. (a) Subject to par. (b), the board shall establish and oversee a small business retirement savings program that meets the requirements specified in this section.

SB70,,6695 (b) After soliciting competitive sealed proposals under s. 16.75 (2m), the board shall select and contract with a vendor to provide the following services in administering the small business retirement savings program:

SB70,,6696 1. Investment services.

SB70,,6697 2. Accounting and record-keeping services.

SB70,,6698 3. Any other professional services considered necessary by the board.

SB70,,6699 (3) General program requirements. The board shall design the program under this section so that it meets all of the following requirements:

SB70,,6700 (a) The program allows eligible employees to contribute to their accounts through payroll deductions and requires participating employers to withhold from employees’ wages, through payroll deductions, employees’ account contributions and remit those contributions directly to the investment administrator.

SB70,,6701 (b) Subject to the record-keeping requirement under sub. (6) (b), the program allows the investment administrator to pool accounts for investment purposes and designates the investment administrator as the trustee of account contributions and earnings.

SB70,,6702 (c) The administrative costs of the program are low, and the fee that the investment administrator may charge an eligible employee is limited to a fixed monthly fee in an amount approved by the board.

SB70,,6703 (d) The program does not require an eligible employee to maintain a minimum account balance if the employee makes contributions to the account each pay period.

SB70,,6704 (e) The program allows account consolidation and roll over, including roll over to a retirement savings option not part of the program to the extent allowed under the Internal Revenue Code.

SB70,,6705 (f) The program allows an eligible employee who has established an account to continue the account after separating from employment with a participating employer if the account is maintained with a positive balance.

SB70,,6706 (g) The program incorporates maximum contribution limits established by the board in accordance with the Internal Revenue Code contribution limits for Roth IRAs, separately and in combination with traditional IRAs, as well as any similar contribution limit for account types other than a Roth IRA if the account type is offered under sub. (5) (a) 2.

SB70,,6707 (4) Participating employers; eligible employees. (a) A private employer may participate in the program under this section if all of the following apply:

SB70,,6708 1. The employer does not offer a retirement savings plan to all employees.

SB70,,6709 2. The employer provides notice to the board, in the form and manner prescribed by the board, of the employer’s election to participate in the program and the employer certifies that, on the date of this notice, the employer had 50 or fewer employees.

SB70,,6710 3. The employer has at least one employee who is a resident of this state.

SB70,,6711 (b) After a private employer has elected under par. (a) to participate in the program, the employer shall provide notice to each of its eligible employees of the eligible employee’s right to decline participation in the program. After providing this notice, the employer shall enroll the eligible employee in the program unless the eligible employee informs the employer of the eligible employee’s decision not to participate in the program.

SB70,,6712 (5) Specific program requirements. (a) 1. Except as provided in subd. 2., the program under this section shall provide for an eligible employee who has enrolled in the program to make contributions to a Roth IRA account.

SB70,,6713 2. The program may also offer options for account types other than a Roth IRA, and if other options are offered, the program shall allow an enrolled eligible employee to select any of these other account types for investing contributions under the program.

SB70,,6714 (b) 1. The program under this section shall provide an eligible employee who has enrolled in the program with at least 5 investment options within each account type, including all of the following investment options:

SB70,,6715 a. A stable value or capital preservation fund.