Amendment #1253 to H4200

Secure Choice Retirement for Private Sector Employees

Representatives O'Day of West Boylston and Donahue of Worcester move to amend the bill by adding the following section:

Section XXXX

Notwithstanding any general or special law to the contrary, there shall be a special commission to investigate and study the prospect of a state-run voluntary retirement account programs as a mechanism to encourage private employees to save for retirement.

The commission shall evaluate the potential impact that the state-run voluntary retirement accounts may have upon private employee retirees, both at present and at the time of retirement.

The commission shall consist of 11 members: 2 of whom shall be the Speaker of the House and the President of the Senate, or their designee, who shall co-chair the commission; 1 of whom shall be the secretary of administration and finance, or the secretary’s designee; 1 of whom shall be the treasurer, or the treasurer’s designee; 1 of whom shall be the executive director of the public employee retirement administration commission, or the director’s designee;  1 of whom shall be a member of the financial planning industry; 1 member who shall be the house minority leader or a designee; 1 member who shall be the senate minority leader or a designee; 3 of whom shall be private citizens appointed by the co-chairs, based upon the citizens’ expertise in academia, retirement issues, or financial planning.

The commission shall consult with experts in the relevant fields and file a report of its recommendations. The report shall include, but not be limited to: (i) an analysis of the current retirement plans available for private employees ; (ii) an estimate of the cost and initial funding of the establishment of the Secure Choice Multiple-Employer Retirement Trust (MERP) as a profit sharing defined contribution; (iii) an estimate of the cost and initial funding of the establishment of the Secure Choice Individual Retirement Account Trust with the purpose of accepting individual contributions through payroll deduction and direct payment into individual retirement accounts. (IRAP);  (iv) an analysis of the effect and operation of an automatic enrollment payroll deduction IRA for individuals in the private sector ; (v) analysis on the potential impact that this plans may pose to private companies based in the Commonwealth offering similar services; (vi) recommendations on effective administration and oversight of the state-sponsored plans; (vii) an analysis of the commonwealth liabilities under ERISA; (viii) recommendations on investment management and best practices.

The commission shall file a report of its recommendations, together with the actuarial analysis, if any, with the clerks of the house and senate, the chairs of the house and senate committee”

Additional co-sponsor(s) added to Amendment #1253 to H4200

Secure Choice Retirement for Private Sector Employees