February 19, 2024 - Introduced by Senators Agard, Wirch, Spreitzer and Roys, cosponsored by Representatives Drake, Ratcliff, Joers, Baldeh, Jacobson, Shankland, Subeck, C. Anderson, Emerson, Conley, Sinicki, Moore Omokunde, Hong, J. Anderson, Bare and Ohnstad. Referred to Committee on Financial Institutions and Sporting Heritage.
SB1035,,22An Act to amend 20.144 (1) (g); and to create 20.144 (1) (c), 20.144 (1) (cd) and 224.56 of the statutes; relating to: a retirement plan marketplace, granting rule-making authority, and making an appropriation. SB1035,,33Analysis by the Legislative Reference Bureau This bill requires the Department of Financial Institutions to establish and manage a retirement plan marketplace to connect individuals who are residents of this state (eligible individuals) and employers that have fewer than 100 employees and that employ at least one individual who is a resident of this state (small employers) with retirement plans offered by private financial services firms, to improve access to retirement income options for eligible individuals, to encourage eligible individuals to plan for retirement and increase retirement savings, and to remove barriers to entry for small employers to offer retirement plan options to employees. Under the bill, DFI must contract with a vendor to create a website to host the marketplace.
The bill provides that a financial services firm that wants to offer retirement plans on the marketplace may apply to DFI, and DFI may approve the firm to participate if the firm offers high quality retirement plans that comply with the federal Employee Retirement Income Security Act of 1974, commonly called ERISA. For each firm approved to participate in the marketplace, DFI must specify the retirement plans the firm may offer on the marketplace. The bill requires DFI to ensure that the marketplace offers only ERISA compliant retirement plans with reasonable fees and offers a range of retirement plans and investment options, including retirement plans for investors with various levels of risk tolerance and of various ages and retirement plans that are environmentally friendly and socially responsible. The bill limits the administrative fees a firm may charge a participant enrolled in a retirement plan offered on the marketplace to no more than 100 basis points in total annual fees.
Under the bill, DFI must, in cooperation with the Department of Revenue, the Department of Workforce Development, and other state agencies, develop a marketing program to publicize and promote the marketplace to small employers and eligible individuals.