Bill
HB 5336
Creates a state-sponsored automatic-enrollment payroll-deduction IRA program (Michigan Secure Retirement Savings Program) for private-sector workers without employer plans.
Status / Key identifiers
- Bill number: HB 5336 (tie-bar with HB 5335'25)
- Short title: Retirement Savings Program Act (creates the Michigan Secure Retirement Savings Program)
- Filed/introduced: March 14, 2025 (document reproduction/reintroduction entries also appear 12/02/2025)
- Latest procedural entries in provided record: read first time 04/07/2025; referred to Human Services (04/07/2025); later reproduced/introduced 12/02/2025 and referred to Government Operations.
- Subject: retirement (other), pension oversight
Purpose and intent
- Establish a state-sponsored, automatic-enrollment payroll-deduction retirement savings program (an IRA-based vehicle) to increase retirement savings among private-sector employees whose employers do not offer a qualified retirement plan.
What the bill would create
- Michigan Secure Retirement Savings Program (automatic-enrollment payroll-deduction IRAs) administered by a Secure Retirement Savings Board.
- Secure Retirement Savings Program Fund: a trust (outside the state treasury) holding individual accounts for enrollees; structured to meet IRS rules for IRAs.
- Secure Retirement Administrative Fund: separate trust fund in the state treasury to pay program administrative costs; may accept grants and public or private funds; funds do not lapse to the general fund.
Key provisions and duties
- Definitions: who counts as an "employee," "employer," "participating employer," and what qualifies as a payroll deposit retirement savings arrangement.
- Automatic payroll-deduction IRAs established as the program vehicle; enrollees’ accounts are individual IRAs under the Internal Revenue Code.
- Board responsibilities:
- Design, establish, and operate the program consistent with best practices to maximize participation, savings, portability, and simplicity.
- Appoint an IRS‑compliant trustee (IRC §408), contract for vendors (investment managers, administrators, auditors, etc.), and employ/contract staff.
- Invest pooled funds prudently and act solely in the interest of enrollees and beneficiaries (explicit fiduciary standard).
- Review investment vendors at least every four years.
- Promulgate rules and oversee program administration.
- Funds in the program are not state property and must not be commingled with state funds.
- The bill references civil fines and rulemaking authority (details not provided in excerpt).
Who would be affected
- Primary beneficiaries: private-sector employees (age 18+, with Michigan‑source wages) who lack access to employer-sponsored qualified retirement plans.
- Employers: entities that have been in business at least 730 days, employed one or more persons in the prior year, and have not offered a qualified plan in the preceding two years—these employers would be the targets for required participation (i.e., facilitating payroll deductions or becoming a participating employer).
- State entities: Department of Treasury (program housed there), new Secure Retirement Savings Board, and contracted private vendors; limited fiscal exposure for the state because participant funds are held outside the treasury, though administrative funding may come from public or private sources.
Potential impacts and considerations
- Expands access to retirement savings via automatic enrollment and payroll deductions, increasing portability and likelihood of saving among eligible private-sector workers.
- Imposes administrative and compliance obligations on qualifying employers (implementation and payroll processing).
- Creates a new state-run retirement program with fiduciary duties, contracting needs, and vendor oversight responsibilities.
- Financial exposure to the state is limited for participant funds (held in trust outside treasury), but administrative costs and potential use of state or grant funds are provided for.
- The text indicates civil fines and rulemaking authority but does not include fine amounts or detailed enforcement provisions in the excerpt.
Notes
- The excerpt truncates some sections (e.g., investment pooling and certain operational details). The bill summary above is based on the provided text; reviewing the full bill text is recommended for enforcement, penalty, and implementation specifics.
Compiled from official sources — confirm details with the bill’s official record.
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