Kansas 2023-2024 Regular Session

Kansas House Bill HB2321

Introduced
2/7/23  
Refer
2/7/23  

Caption

Enacting the Kansas work and save program act, allowing certain individuals to contribute to individual retirement accounts and providing administrative duties and powers of the state treasurer regarding such program.

Impact

The implementation of HB 2321 is expected to have a significant impact on the accessibility of retirement savings plans. Employees will have the opportunity to set aside savings for retirement with the potential for tax advantages. The bill also emphasizes a standardized approach to enrollment, contribution rates, and investment options, which may simplify the decision-making process for participants. However, it places the onus for compliance and understanding of tax implications directly on employees and not on employers, thereby limiting employer liability in the program's operations.

Summary

House Bill 2321, known as the Kansas Work and Save Program Act, establishes a framework for retirement savings through optional individual retirement accounts (IRAs) for Kansas workers. The bill is designed to allow eligible employees to contribute voluntarily to IRAs via payroll deductions, with employers facilitating the process. The state treasurer is responsible for overseeing the program, ensuring that it complies with both state and federal laws, including preventing it from being preempted by ERISA. With provisions for automatic enrollment and allowing individuals who are not traditional employees to participate, the program aims to enhance retirement savings for a broader range of individuals in Kansas.

Contention

While proponents of the bill highlight its potential to improve financial security and promote savings among workers, critics raise concerns about the lack of employer responsibilities in educating employees about their options. Furthermore, there is apprehension regarding the implications of the automatic enrollment feature, which could lead to employees unwittingly participating without fully understanding the associated responsibilities and risks. Balancing increased participation in retirement savings with adequate protections and education for employees remains a contentious issue in the discussions surrounding this legislation.

Companion Bills

No companion bills found.

Previously Filed As

KS HB577

Establishing the Keystone Saves Program, the Keystone Saves Program Fund, the Keystone Saves Administrative Fund and the Keystone Saves Program Advisory Board; and providing for powers and duties of the Treasury Department, for investment and fiduciary responsibilities and for program implementation.

KS HB1263

Establishing the Keystone Saves Program, the Keystone Saves Program Fund, the Keystone Saves Administrative Fund and the Keystone Saves Program Advisory Board; and providing for powers and duties of the Treasury Department, for investment and fiduciary responsibilities and for program implementation.

KS SB728

Establishing the Keystone Saves Program, the Keystone Saves Program Fund, the Keystone Saves Program Administrative Fund and the Keystone Saves Program Advisory Board; and providing for powers and duties of the Treasury Department and the Department of Labor and Industry, for investment and fiduciary responsibilities and for program implementation.

KS SB1056

In Treasury Department, further providing for investment of moneys; establishing the Keystone Saves Program, the Keystone Saves Program Fund, the Keystone Saves Administrative Fund and the Keystone Saves Program Advisory Board; providing for powers and duties of the Treasury Department, for investment and fiduciary responsibilities and for program implementation; and providing for the electric vehicle road user charge effective date.

KS HB2757

Enacting the adoption savings account act, allowing individuals to establish adoption savings accounts with certain financial institutions, providing eligible expenses, requirements and restrictions for such accounts and establishing addition and subtraction modifications for contributions to such accounts under the Kansas income tax act.

KS SB494

Enacting the adoption savings account act, allowing individuals to establish adoption savings accounts with certain financial institutions, providing eligible expenses, requirements and restrictions for such accounts and establishing addition and subtraction modifications for contributions to such accounts under the Kansas income tax act.

KS HB2903

Individual savings plan program; appropriation

KS HB2416

Senate Substitute for HB 2416 by Committee on Assessment and Taxation - Enacting the adoption savings account act, allowing individuals to establish adoption savings accounts with certain financial institutions, providing eligible expenses, requirements and restrictions for such accounts and establishing addition and subtraction modifications for contributions to such accounts under the Kansas income tax act.

KS HB2839

Individual savings plan program; appropriation

KS SB1375

Study committee; retirement savings programs

Similar Bills

MS SB2861

Mississippi Work and Save Program; create.

MS HB1019

Mississippi Work and Save Program; establish.

MS HB701

Mississippi Work and Save Program; create.

MS SB2798

Mississippi Work and Save Program; create.

MS HB915

Mississippi Work and Save Program; create.

MS HB117

Mississippi Work and Save Program; create.

HI SB3289

Relating To Hawaii Retirement Savings.

TX HB3601

Relating to the creation of a state-administered retirement plan.