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April 18, 2026 Clouds | 61°F
The 194th General Court of the Commonwealth of Massachusetts

Bill S.1878 194th (Current)

An Act relative to the SMART plan

By Ms. Lovely, a petition (accompanied by bill, Senate, No. 1878) of Joan B. Lovely for legislation relative to the SMART plan. Public Service.

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Bill Information

Presenter:
Joan B. Lovely

SMART Plan

• Amends GL 29:64 (Deferred compensation plan) to allow the State Treasurer and the treasurers of political subdivisions to establish an automatic enrollment feature within deferred compensation programs. • Allows the state treasurer to adopt annual and supplemental budgets as necessary which may include salaries for employees working on and/or administering the deferred compensation program. o Budgets may be funded from the administrated expense account • Allows state treasurer to establish an automatic enrollment feature, which does not require authorization from an employee which is deemed to be an exception to the Massachusetts Wage Act or any other state law requiring employee authorization for a payroll deduction. • The details of the automatic enrollment feature would include: o Automatic enrollment would only apply to new state employees hired on or after June 1, 2022; and under the agency or department’s discretion for Code section 403(b) eligible employees; o Automatic enrollment applies to only new employees of a ‘governmental body’ if they implement the feature; o Automatic enrollment may not require more than the IRS safe harbor maximum deferral percentage; o Amount of compensation for an employee would automatically increase by a specified amount each year unless employee opts out or chooses to defer a different amount; o Employees would have up to 90 days to stop participating in the plan; o Employees would receive a refund if they stop participating; o A qualified default investment option to receive contributions by employees who does not choose an investment alternative; and o The plan would adhere to notice requirements in accordance with the IRS. • The treasurer or chief financial officer on behalf of a governmental body may implement an automatic enrollment feature within its deferred compensation program. • The enrollment feature is an exception to the Massachusetts Wage Act and any other state law requiring employee authorization for a payroll deduction or any similar ordinance of a governmental body. • Any auto enrollment feature would only apply to new employees of a governmental body hired on or after June 1, 2024.
* The bill summary was created by the Primary Sponsor of the bill; no committee of the General Court certifies the accuracy of its contents.

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