Mississippi Secure Choice Savings Program; create.
The creation of the Mississippi Secure Choice Savings Program is intended to benefit both employees and participating employers. Employees will have the opportunity to save for retirement through automatic contributions from their paychecks, which are directed into individual IRAs managed by the Mississippi Secure Choice Savings Board. The Board is tasked with overseeing the program, engaging investment managers, and offering various investment options while ensuring compliance with federal standards concerning retirement savings. By establishing a statewide program, Mississippi hopes to improve financial security for its residents as they prepare for retirement.
House Bill 345, also known as the Mississippi Secure Choice Savings Program Act, establishes a state-sponsored retirement savings program specifically for private-sector employees who work for employers that do not currently offer a retirement plan. The program is designed as an automatic enrollment payroll deduction individual retirement account (IRA) to facilitate greater retirement savings in a user-friendly, low-cost, and portable manner. The program aims to address the retirement savings gap faced by many individuals working in the private sector, particularly those employed by small businesses that typically lack access to retirement benefits.
While the bill has garnered support for its potential to expand retirement savings, there are notable points of contention surrounding its implementation. Critics may argue concerns over employer compliance, particularly regarding penalties for non-compliance with enrollment requirements, which can be significant ($250 per employee for each calendar year). There is also apprehension about the responsibilities placed on the Mississippi Secure Choice Savings Board, including its fiduciary duties to manage participant funds responsibly and maintain low administrative costs while providing adequate returns on investments. The state’s liability—or lack thereof—for benefits accrued under the program might lead to various interpretations and concerns about long-term financial stability for participants.