Introduced by: Hala S. Ayala
Multiple employer retirement plan for private employers and their employees. Directs the governing board of the Virginia College Savings Plan (the Board) to establish the Multiple Employer Retirement Plan (the Plan). The Plan shall allow employees of private employers in the Commonwealth to contribute to a defined contribution retirement plan overseen by the Board. The bill allows all self-employed individuals, sole proprietors, and nongovernmental employers to allow their employees to participate in the Plan. It provides for automatic enrollment of an employer's employees if such employer chooses to participate in the Plan. The bill authorizes the Board to contract with third parties to implement and administer the Plan.
The Plan shall allow an enrollee to contribute to an account at a default rate and modify his contributions within the parameters of the Internal Revenue Code. The Plan allows but does not require a participating employer to contribute to the account of any enrollee. The bill prohibits the Commonwealth from guaranteeing a rate of return or interest rate on any contribution and indemnifies it from losses incurred through the Plan. The bill contains a reenactment clause and directs the Virginia College Savings Plan to analyze current state and federal retirement programs, other retirement savings options, costs, and the level of interest in such a plan. The Virginia College Savings Plan shall report its findings and recommendations to the General Assembly on or before December 15, 2020.