Mississippi Work and Save Program; create.
The implementation of this program is expected to enhance retirement savings for a significant number of Mississippi citizens, especially moderate- and lower-income households who typically lack adequate savings for retirement. By simplifying the process of saving for retirement through voluntary payroll deductions, the program aims to alleviate the future financial strain on state public assistance programs. This could, in turn, lower liabilities for taxpayers by reducing the number of residents relying on state-funded retirement assistance
House Bill 915 establishes the Mississippi Work and Save Program, a state-sponsored retirement savings initiative aimed at aiding individuals in Mississippi, particularly those without access to employer-sponsored retirement plans. This program allows eligible employers to offer their employees the option to contribute to an Individual Retirement Account (IRA) via payroll deduction. It also establishes the Mississippi Work and Save Board, which oversees the program, sets regulations, and manages contributions which will specifically be directed to Roth IRAs, chosen for their tax advantages in the long term.
Though the bill has garnered support for its intent to improve financial security, there are concerns regarding employer responsibilities and potential liabilities. Employers are not required to make contributions; however, they must comply with regulations concerning employee participation, which includes potential penalties for failing to enroll employees properly. Additionally, debates arose over how the program might fit into the broader framework of state retirement policy and interrelations with existing federal regulations under ERISA. The board's powers to contract with private entities also raised questions about cost efficiency and transparency.