GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 79
Short Title: North Carolina Work and Save. (Public)
Sponsors: Representatives Lowery, McNeely, and Warren (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House
February 11, 2025
*H79-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO CREATE THE SMALL BUSINESS RETIREMENT SAVINGS PROGR AM AND 2
TO APPROPRIATE FUNDS. 3
Whereas, the General Assembly finds that too many North Carolina citizens have no 4
or inadequate savings for retirement, and an estimated 1.7 million North Carolina working 5
families, including employees, independent contractors, and the self-employed, have no access 6
to an employer-sponsored retirement plan or program or any other easy way to save at work; and 7
Whereas, it is the policy of the State to assist the North Carolina private-sector 8
workforce, including in particular moderate- and lower-income working households, to 9
voluntarily save for retirement, including by facilitating saving in individual retirement accounts 10
(IRAs) as well as by encouraging employers to adopt retirement savings and other retirement 11
plans for employees in the State; and 12
Whereas, more adequate, portable, low-cost, and consumer-protective retirement 13
saving by North Carolina households will enhance their retirement security and ultimately reduce 14
the pressure on State public assistance programs for retirees and other elderly citizens and the 15
potential burden on North Carolina taxpayers to finance such programs; and 16
Whereas, the General Assembly intends to establish a North Carolina Work and Save 17
Program that will use the services of competent and qualified private-sector entities selected by 18
the North Carolina Small Business Retirement Savings Program Board to administer the Program 19
and manage the funds on behalf of the Program participants; and 20
Whereas, the North Carolina Department of State Treasurer manages the State's 21
finances, including pensions, healthcare, investments, and unclaimed property; Now, therefore, 22
The General Assembly of North Carolina enacts: 23
SECTION 1. Article 10 of Chapter 143B of the General Statutes is amended by 24
adding a new Part to read: 25
"Part 2K. North Carolina Small Business Retirement Savings Program. 26
"§ 143B-437.120. Title. 27
This Part shall be known as the "North Carolina Small Business Retirement Savings 28
Program" or "North Carolina Work and Save." 29
"§ 143B-437.121. Definitions. 30
The following definitions apply in this Part: 31
(1) Administrative Fund. – The North Carolina Small Business Retirement 32
Savings Administrative Fund established in G.S. 143B-437.130. 33
(2) Board. – The North Carolina Small Business Retirement Savings Program 34
Board. 35 General Assembly Of North Carolina Session 2025
Page 2 House Bill 79-First Edition
(3) Covered employee. – An individual who is employed by a covered employer, 1
who has wages or other compensation that is allocable to the State, and who 2
is at least 18 years of age. A covered employee does not include any of the 3
following: 4
a. Any employee covered under the federal Railway Labor Act (45 5
U.S.C. § 151). 6
b. Any employee on whose behalf an employer makes contributions to a 7
Taft-Hartley multiemployer pension trust fund. 8
c. Any individual who is an employee of the federal government, the 9
State or any other state, any county or municipal corporation, or any 10
of the State's, any other state's, or the federal government's units or 11
instrumentalities. 12
(4) Covered employer. – A person or entity engaged in a business, industry, 13
profession, trade, or other enterprise in the State, whether for profit or not for 14
profit, excluding the federal government, the State, any county, any 15
municipality, or any political subdivision of the State, and provided that 16
covered employer does not include an employer that maintains a specified 17
tax-favored retirement plan for its employees or has done so effective in form 18
and operation at any time within the current or two preceding calendar years. 19
If an employer does not maintain a specified tax-favored retirement plan for a 20
portion of a calendar year ending on or after the effective date of this Article 21
and adopts such a plan effective for the remainder of that calendar year, the 22
employer is exempt from covered employer status for that remainder of the 23
year. 24
(4a) Department. – The North Carolina Department of Commerce. 25
(5) ERISA. – The Employee Retirement Income Security Act of 1974, as 26
amended (29 U.S.C. § 1001 et seq.). 27
(6) Internal Revenue Code. – The Internal Revenue Code of 1986, as amended 28
(Title 26 of the United States Code). 29
(7) IRA. – A traditional or Roth individual retirement account or individual 30
retirement annuity. 31
(8) Participant. – An individual who is contributing to an IRA under the Program 32
or has an IRA account balance under the Program. 33
(9) Participating employer. – A covered employer that provides for covered 34
employees a payroll deduction IRA provided for by this Article. 35
(10) Payroll deduction IRA arrangement or payroll deduction IRA. – An 36
arrangement by which an employer allows employees to contribute to an IRA 37
by means of payroll deduction. 38
(11) Program or North Carolina Work and Save Program. – The Small Business 39
Retirement Savings Program established by this Article. 40
(12) Roth IRA. – A Roth individual retirement account or individual retirement 41
annuity under section 408A of the Internal Revenue Code. 42
(13) Specified tax-favored retirement plan. – A retirement plan that is tax-qualified 43
under or is described in and satisfies the requirements of subsection 401(a), 44
401(k), 403(a), 403(b), 408(k) (Simplified Employee Pension), or 408(p) 45
(SIMPLE-IRA) of the Internal Revenue Code. 46
(14) Total fees and expenses. – All fees, costs, and expenses, including, but not 47
limited to, administrative expenses, investment expenses, investment advice 48
expenses, accounting costs, actuarial costs, legal costs, marketing expenses, 49
education expenses, trading costs, insurance annuitization costs, and other 50
miscellaneous costs. 51 General Assembly Of North Carolina Session 2025
House Bill 79-First Edition Page 3
(15) Traditional IRA. – A traditional individual retirement account or traditional 1
individual retirement annuity under subsection 408(a) or (b) of the Internal 2
Revenue Code. 3
(16) Trust. – The trust in which the assets of the Program are held. Where 4
applicable, except as may be otherwise specified, references throughout this 5
Article to the Program generally are intended to refer also to the Trust, 6
including the assets, facilities, costs and expenses, receipts, expenditures, 7
activities, operations, administration, or management. 8
"§ 143B-437.122. Establishment of Board. 9
(a) The North Carolina Small Business Retirement Savings Board is established for 10
administrative purposes in the Department of Commerce, but the Board shall exercise its powers 11
and duties independently of the Department. The Department shall provide administrative 12
support for the Board in carrying out its duties pursuant to this Article. 13
(b) The Board shall consist of 12 members. 14
(1) Ten voting members shall be appointed as follows: 15
a. The State Treasurer shall appoint a member who has a favorable 16
reputation for skill, knowledge, and experience in retirement 17
investment products or retirement plan designs. 18
b. Five members appointed by the Governor as follows: 19
1. One member who has a favorable reputation for skill, 20
knowledge, and experience in retirement investment products 21
or retirement plan designs. 22
2. One member who has a favorable reputation for skill, 23
knowledge, and experience relating to small business or 24
covered employers. 25
3. One member from the Office of State Budget and Management 26
or other designee knowledgeable about fiscal impacts. 27
4. One member who is an employee of the Department of 28
Commerce. 29
5. One member of the public. 30
c. Two members appointed by the General Assembly upon the 31
recommendation of the Speaker of the House of Representatives as 32
follows: 33
1. One member who is a retired individual or an individual who 34
represents persons retired to be a representative of the interests 35
of retirees. 36
2. One member who has a favorable reputation for skill, 37
knowledge, and experience in the interests of employers in 38
retirement saving. 39
d. Two members appointed by the General Assembly upon the 40
recommendation of the President Pro Tempore of the Senate as 41
follows: 42
1. One member who is a representative of an association 43
representing employees or who has a favorable reputation for 44
skill, knowledge, and experience in the interests of employees 45
in retirement saving. 46
2. One member who has a favorable reputation for skill, 47
knowledge, and experience in retirement investment products 48
or retirement plan designs. 49 General Assembly Of North Carolina Session 2025
Page 4 House Bill 79-First Edition
(2) In addition to the 10 voting members, the President Pro Tempore of the Senate 1
and the Speaker of the House of Representatives shall each appoint one 2
nonvoting advisory member. 3
(c) All initial appointments shall be made no later than October 1, 2025. Of the initial 4
five appointments made by the Governor, two shall be appointed for four-year terms, two shall 5
be appointed for two-year terms, and one shall be appointed for a one-year term, with all terms 6
to begin on October 1, 2025. Of the initial two appointments made by the General Assembly 7
upon the recommendation of the President Pro Tempore of the Senate, one shall be appointed for 8
a four-year term and one shall be appointed for a two-year term, with both terms to begin on 9
October 1, 2025. Of the initial two appointments made by the General Assembly upon the 10
recommendation of the Speaker of the House of Representatives, one shall be appointed for a 11
four-year term and one shall be appointed for a two-year term, with both terms to begin on 12
October 1, 2025. The initial appointment by the State Treasurer shall be for a term of three years 13
to begin on October 1, 2025. All successors shall be appointed for four-year terms. All members 14
of the Board shall serve at the pleasure of the appointing authority. 15
(d) Members of the Board shall serve without compensation and shall receive per diem, 16
subsistence, and travel allowances as provided in G.S. 138-5 and G.S. 138-6 as applicable. 17
(e) The Governor shall convene the first meeting of the Board no later than October 15, 18
2025. A majority of the voting members of the Board constitutes a quorum. The first order of 19
business before the Board shall be to elect a chair from among the Board's membership. A 20
vacancy in the membership of the Board shall not impair the right of a quorum to exercise the 21
powers and duties of the Board. 22
"§ 143B-437.123. Powers and duties of the Board. 23
(a) The Board shall have the following powers and duties, subject to its authority and 24
fiduciary duty: 25
(1) Design, develop, implement, maintain, govern, and promulgate rules with 26
respect to a payroll deduction retirement savings program for covered 27
employers and, to that end, may conduct market, legal, and feasibility 28
analyses. 29
(2) Elect a chair and other officers it deems necessary. 30
(3) Meet as necessary to perform its duties. 31
(4) Appoint an executive director, who shall be the chief administrative officer of 32
the Board. 33
(5) Retain trustees, record keepers, investment managers, investment advisors, 34
and other administrative, professional, expert advisors and service providers, 35
none of whom shall be members of the Board and all of whom shall serve at 36
the pleasure of the Board, and determine their duties and compensation. The 37
Board may authorize the executive director and other officials to oversee 38
requests for proposals or other public competitions and enter into contracts on 39
behalf of the Board and conduct any business necessary for the efficient 40
operation of the Board. 41
(6) Cause the Program, Trust, and arrangements and accounts established under 42
the Program to be designed, established, and operated: 43
a. In accordance with best practices for retirement saving vehicles. 44
b. To encourage participation, saving, sound investment practices, and 45
appropriate selection of investment options, including any default 46
investments. 47
c. To maximize simplicity and ease of administration for covered 48
employers. 49
d. To arrange for collective, common, and pooled investment of assets of 50
the Program and Trust, including investments in conjunction with 51 General Assembly Of North Carolina Session 2025
House Bill 79-First Edition Page 5
other funds with which these assets are permitted by law to be 1
collectively invested, with a view to achieving economies of scale and 2
other efficiencies designed to minimize costs for the Program and its 3
participants, to promote portability of benefits. 4
e. To avoid preemption of the Program by federal law (Employee 5
Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq.). 6
(7) Develop and implement an investment policy that defines the Program's 7
investment objectives, consistent with the objectives of the Program, and that 8
provides for policies and procedures consistent with those investment 9
objectives. The Board shall designate appropriate default investments that 10
include a mix of asset classes, such as target date and balanced funds. The 11
Board shall seek to minimize participant fees and expenses of investment and 12
administration. The Board shall strive to design and implement investment 13
options available to holders of accounts established as part of the Program and 14
other Program features that are intended to achieve maximum possible income 15
replacement balanced with an appropriate level of risk in an IRA-based 16
environment consistent with the investment objectives under the policy. The 17
investment options may encompass a range of risk and return opportunities 18
and allow for a rate of return commensurate with an appropriate level of risk 19
in view of the investment objectives under the policy. The menu of investment 20
options shall be determined taking into account the nature and objectives of 21
the Program, the desirability based on behavioral research findings of limiting 22
investment choices under the Program to a reasonable number, and the 23
extensive investment choices available to participants in the event that they 24
roll over to an IRA outside the Program. 25
(8) Set and collect necessary fees from covered employees for application, 26
account, or administrative processing and accept any grants, gifts, legislative 27
appropriations, loans, and other moneys from the State, any unit of federal, 28
State, or local government, or any other person, firm, or entity to defray the 29
costs of administering and operating the Program. 30
(9) If necessary, determine the eligibility of an employer, employee, or other 31
individual to participate in the Program. 32
(10) Adopt rules it deems necessary or advisable for the implementation of this 33
Article and the administration and operation of the Program. 34
(11) Cause expenses incurred to initiate, implement, maintain, and administer the 35
Program to be paid from contributions to, or investment returns or assets of, 36
the Program or other money collected by or for the Program or pursuant to 37
arrangements established under the Program to the extent permitted under 38
federal and State law. 39
(12) Invest and reinvest its funds in the Administrative Fund in accordance with 40
applicable State and federal laws. 41
(13) Make and enter into competitively procured contracts, agreements, 42
memoranda of understanding, partnerships, or other arrangements, to 43
collaborate and cooperate with, and to retain, employ, and contract with or for 44
any of the following to the extent necessary or desirable, for the effective and 45
efficient design, implementation, and administration of the Program 46
consistent with the purposes set forth in this Article and to maximize outreach 47
to covered employers and covered employees: 48
a. Services of private and public financial institutions, depositories, 49
consultants, actuaries, counsel, auditors, investment advisers, 50
investment administrators, investment management firms, other 51 General Assembly Of North Carolina Session 2025
Page 6 House Bill 79-First Edition
investment firms, third-party administrators, other professionals and 1
service providers, and State public retirement systems. 2
b. Research, technical, financial, administrative, and other services. 3
c. Services of other State agencies to assist the Board in the exercise of 4
its powers and duties. 5
(14) The Board may enter into an intergovernmental agreement or memorandum 6
of understanding with the State and any agency of the State to receive 7
outreach, technical assistance, enforcement and compliance services, 8
collection or dissemination of information pertinent to the Program subject to 9
such obligations of confidentiality as may be agreed to or required by law, or 10
other services or assistance. The State and any agencies of the State that enter 11
into such agreements or memoranda of understanding shall collaborate to 12
provide the outreach, assistance, information, and compliance or other 13
services or assistance to the Board. The memoranda of understanding may 14
cover the sharing of costs incurred in gathering and disseminating information 15
and the reimbursement of costs for any enforcement activities or assistance. 16
(15) Make and enter into contracts, agreements, memoranda of understanding, 17
arrangements, partnerships, or other arrangements to collaborate, cooperate, 18
coordinate, contract, or combine resources, investments, or administrative 19
functions with other governmental entities, including other states or their 20
agencies or instrumentalities that maintain or are establishing retirement 21
savings programs compatible with the Program, including collective, 22
common, or pooled investments with other funds of other states' programs 23
with which the assets of the Program and Trust are permitted by law to be 24
collectively invested, to the extent necessary or desirable for the effective and 25
efficient design, administration, and implementation of the Program 26
consistent with the purposes set forth in this Article, including the purpose of 27
achieving economies of scale and other efficiencies designed to minimize 28
costs for the Program. 29
(16) Develop and implement an education and outreach plan to gain input and 30
disseminate information regarding the North Carolina Work and Save 31
Program and retirement savings and financial literacy in general. 32
(17) Establish procedures for the timely and fair resolution of participant and other 33
disputes related to accounts or Program operation. 34
(18) Evaluate the need for, and procure if and as deemed necessary, pooled private 35
insurance against any and all loss in connection with the property, assets, or 36
activities of the Program. 37
(19) Borrow from the State, any unit of federal, State, or local government, or any 38
other person, firm, partnership, corporation, or other entity working capital 39
funds and other funds as may be necessary for this purpose, provided that such 40
funds are borrowed in the name of the Program and Board only and that any 41
such borrowings shall be payable solely from the revenues of the Program. 42
(20) Enter into long-term procurement contracts with one or more financial 43
providers that provide a fee structure that would assist the Program in avoiding 44
or minimizing the need to borrow or to rely upon general assets of the State. 45
(b) In addition to the applicable prohibitions contained in Article 4 of Chapter 138A of 46
the General Statutes, a Board member, executive director, and other staff of the Board shall not 47
do any of the following: 48
(1) Directly or indirectly have any interest in the making of any investment under 49
the Program or in gains or profits accruing from any such investment. 50 General Assembly Of North Carolina Session 2025
House Bill 79-First Edition Page 7
(2) Borrow any Program-related funds or deposits or use any such funds or 1
deposits in any manner, for himself or herself or as an agent or partner of 2
others. 3
(3) Become an endorser, surety, or obligor on investments made under the 4
Program. 5
"§ 143B-437.124. Standard of conduct; fiduciary duty. 6
The Board, individual members of the Board, all persons serving as staff to the Program, and 7
any other agents appointed or engaged shall discharge their duties for the exclusive purpose of 8
providing benefits to the Program participants and administering the Program with discharge of 9
its duties and shall: 10
(1) Defray reasonable expenses in the administration of the Program. 11
(2) Govern Program investors with the care, skill, prudence, and diligence as a 12
prudent person acting in a like capacity would. 13
(3) Comply with all State ethics laws and regulations. 14
"§ 143B-437.125. Requirements for the North Carolina Small Business Retirement Savings 15
Program. 16
The Program developed and established by the Board shall: 17
(1) Provide a process to facilitate voluntary enrollment into the Program for 18
covered employers, covered employees, and self-employed persons. 19
(2) Provide that the IRA to which contributions are made will be a Roth IRA, 20
except that the Board shall have the authority at any time to add an option for 21
all participants to affirmatively elect to contribute to a traditional IRA as an 22
alternative to the Roth IRA. 23
(3) Provide that the standard package shall be a Roth IRA with a target date fund 24
investment, and a contribution rate that begins at five percent (5%) of salary 25
or wages; provided, however, that the covered employee can choose to stop 26
participation altogether, to use a traditional IRA and a different investment 27
from among the options available, and to contribute at a higher or lower 28
contribution rate, subject to the IRA contribution dollar limits applicable 29
under the Internal Revenue Code. 30
(4) Provide on a uniform basis, if and when the Board so determines, in its 31
discretion, for annual increases of each participant's contribution rate, by not 32
more than one percent (1%) of salary or wages per year up to a maximum of 33
eight percent (8%). Any such increases shall apply to participants, as 34
determined by the Board, by default or only if initiated by affirmative 35
participant election included as part of the standard package, in either case 36
subject to the IRA contribution limits applicable under the Internal Revenue 37
Code. 38
(5) Allow a covered employer to withhold payroll deductions from a covered 39
employee's paycheck for the express purpose of making a covered employee 40
contribution to the Program funds. 41
(6) Include a process for direct deposit of contributions into covered employee 42
investments in the Program. 43
(7) Covered employers are not allowed to make employer contributions to the 44
covered employee's accounts. 45
(8) Allow for covered employees to make non-payroll contributions into an 46
account in addition to the covered employer payroll deducted amounts. 47
(9) Include an account reporting system that requires separate records and 48
accounting for each covered employer and covered employee enrolled. 49
(10) Include an account status notification process for covered employees to be 50
notified about and track their investments pursuant to this Article. 51 General Assembly Of North Carolina Session 2025
Page 8 House Bill 79-First Edition
(11) Allow portability of benefits, including the ability to make tax-free rollovers 1
or transfers from accounts under the Program to other non-Program retirement 2
accounts or to tax-qualified plans that accept such rollovers or transfers 3
provided any rollover is initiated by the employee. 4
(12) Establish rules and procedures governing the distribution of funds from the 5
Program, including such distributions as may be permitted or required by the 6
Program and any applicable provisions of tax laws, with the objectives of 7
maximizing financial security in retirement, helping to protect spousal rights, 8
and assisting participants with the challenges of decumulation of savings. The 9
Board shall have the authority, in its discretion, to provide for one or more 10
reasonably priced distribution options to provide a source of fixed retirement 11
income, including income for life or for the participant's life expectancy (or 12
for joint lives and life expectancies, as applicable). 13
(13) Pool accounts as necessary under the Program for optimum investment 14
opportunity and return on investment outcomes. 15
(14) Be professionally managed. 16
(15) Provide a report on the status of each Program participant's account to each 17
Program participant at least annually. 18
(16) Provide that each Program participant owns the contributions to and earnings 19
on amounts contributed to the participant's account under this Article and that 20
the State, the Board, and covered employers have no proprietary interest, 21
whether legal or equitable, in those contributions or earnings. 22
(17) Keep total fees and expenses as low as practicable. 23
(18) Be designed and implemented in a manner consistent with federal law, 24
including favorable federal tax treatment, to the extent that it applies and is 25
consistent with the Program not being preempted by ERISA. 26
(19) Ensure that the North Carolina Small Business Retirement Savings Program 27
is designed to be financially self-sustaining over time. 28
(20) Provide that, if a covered employer fails to transmit a payroll deduction 29
contribution to the Program on the earliest date the amount withheld from the 30
covered employee's compensation can reasonably be segregated from the 31
covered employer's assets, but not later than the fifteenth day of the month 32
following the month in which the covered employee's contribution amounts 33
are withheld from his or her paycheck, the failure to remit such contributions 34
on a timely basis shall be subject to the same sanctions as employer 35
misappropriation of employee wage withholdings and to penalties. 36
"§ 143B-437.126. Rules for the North Carolina Work and Save Program. 37
The Board shall adopt rules to implement the Program that: 38
(1) Establish the processes for enrollment and contributions to Payroll Deduction 39
IRAs under the Program, including elections by covered employees, 40
withholding by covered employers of employee payroll deduction 41
contributions from wages and remittance for deposit to IRAs, and voluntary 42
enrollment and contributions by others, including self-employed individuals 43
and independent contractors, through payroll deduction or otherwise. 44
(2) Establish the processes for withdrawals, rollovers, and direct transfers from 45
IRAs under the Program in the interest of facilitating portability and 46
maximization of benefits. 47
(3) Establish processes for phasing in enrollment of eligible individuals. 48
(4) Conduct outreach to individuals, employers, other stakeholders, and the public 49
regarding the Program. Specify the contents, frequency, timing, and means of 50
required disclosures from the Program to covered employees, participants, 51 General Assembly Of North Carolina Session 2025
House Bill 79-First Edition Page 9
other individuals eligible to participate in the Program, covered employers, 1
and other interested parties. These disclosures shall include, but need not be 2
limited to: 3
a. The benefits associated with tax-favored retirement saving. 4
b. The potential advantages and disadvantages associated with 5
contributing to Roth IRAs and, if applicable, traditional IRAs under 6
the Program. 7
c. The eligibility rules for Roth IRAs and, if applicable, traditional IRAs. 8
d. That the individual and not the employer, the State, the Board, any 9
Board member or other State official, or the Program will be solely 10
responsible for determining whether and, if so, how much the 11
individual is eligible to contribute on a tax-favored basis to an IRA. 12
e. The penalty for excess contributions to IRAs and the method of 13
correcting excess contributions. 14
f. Instructions for enrolling, making elections to contribute or to decline 15
to contribute, and making elections regarding contribution rates, type 16
of IRA, and investments. 17
g. Instructions for implementing and for changing the elections. 18
h. The potential availability of a saver's tax credit, including the 19
eligibility conditions for the credit and instructions on how to claim it. 20
i. That employees seeking tax, investment, or other financial advice 21
should contact appropriate professional advisors, and that covered 22
employers are not in a position to provide such advice and are not 23
liable for decisions individuals make in relation to the Program. 24
j. That the payroll deduction IRAs are intended not to be 25
employer-sponsored retirement plans and that the Program is not an 26
employer-sponsored retirement plan. 27
k. The potential implications of account balances under the Program for 28
the application of asset limits under certain public assistance 29
programs. 30
l. That the account owner is solely responsible for investment 31
performance, including market gains and losses, and that IRA 32
accounts and rates of return are not guaranteed by any employer, the 33
State, the Board, any Board member or State official, or the Program. 34
m. Additional information about retirement and saving and other 35
information designed to promote financial literacy and capability 36
which may take the form of links to, or explanations of how to obtain, 37
such information. 38
n. How to obtain additional information about the Program. 39
"§ 143B-437.127. Protection from liability for covered employers. 40
(a) A covered employer or other employer is not and shall not be liable for or bear 41
responsibility for any of the following: 42
(1) An employee's decision to participate in or not to participate in the Program 43
or a participant's specific elections under the Program. 44
(2) Participants' or the Board's investment decisions. 45
(3) The administration, investment, investment returns, or investment 46
performance of the Program, including, without limitation, any interest rate or 47
other rate of return on any contribution or account balance, provided they play 48
no role. 49
(4) The Program design or the benefits paid to participants. 50 General Assembly Of North Carolina Session 2025
Page 10 House Bill 79-First Edition
(5) Individuals' awareness of or compliance with the conditions and other 1
provisions of the tax laws that determine which individuals are eligible to 2
make tax-favored contributions to IRAs, in what amount, and in what time 3
frame and manner. 4
(6) Any loss, failure to realize any gain, or any other adverse consequences, 5
including, without limitation, any adverse tax consequences or loss of 6
favorable tax treatment, public assistance, or other benefits, incurred by any 7
person as a result of participating in the Program. 8
(b) No covered employer or other employer shall be, or shall be considered to be, a 9
fiduciary in relation to the Program or Trust or any other arrangement under the Program. 10
"§ 143B-437.128. Protection from liability for the State. 11
The State has no duty or liability to any party for the payment of any retirement savings 12
benefits accrued by any individual under the Program. The State, the Board, each member of the 13
Board, and the Program: 14
(1) Shall have no responsibility for compliance by individuals with the conditions 15
and other provisions of the Internal Revenue Code that determine which 16
individuals are eligible to make tax-favored contributions to IRAs, in what 17
amount, and in what time frame and manner. 18
(2) Shall have no duty, responsibility, or liability to any party for the payment of 19
any benefits under the Program, regardless of whether sufficient funds are 20
available under the Program to pay such benefits. 21
(3) Do not and shall not guarantee any interest rate or other rate of return on or 22
investment performance of any contribution or account balance. 23
(4) Shall have no liability or responsibility for any loss, deficiency, failure to 24
realize any gain, or any other adverse consequences incurred by any person as 25
a result of participating in the Program. 26
"§ 143B-437.129. Confidentiality of participant and account information. 27
Individual account information relating to accounts under the Program and relating to 28
individual participants, including, but not limited to, names, addresses, telephone numbers, email 29
addresses, personal identification information, investments, contributions, and earnings, is 30
confidential, is not a public record as defined in G.S. 132-1, and may not be disclosed except as 31
follows: 32
(1) To the extent necessary to administer the Program in a manner consistent with 33
this Article, the tax laws of this State, and the Internal Revenue Code; or 34
(2) To the extent that the individual who provides the information or is the subject 35
of the information expressly agrees in writing to the disclosure of the 36
information. 37
"§ 143B-437.130. Funding of Program. 38
The North Carolina Small Business Retirement Savings Administrative Fund is established, 39
to be held in trust separate and distinct from the General Fund. Interest earned by the 40
Administrative Fund shall be credited to the Administrative Fund. Moneys in the Administrative 41
Fund are continuously appropriated to the Board. The Administrative Fund consists of: 42
(1) Moneys appropriated to the Administrative Fund by the General Assembly. 43
(2) Moneys transferred to the Administrative Fund from the federal government, 44
other State agencies, or local governments. 45
(3) Moneys from the payment of application, account, administrative, or other 46
fees and the payment of other moneys due the Board. 47
(4) Any gifts, donations, or grants made to the State for deposit in the 48
Administrative Fund. 49
(5) Earnings on moneys in the Administrative Fund. 50
"§ 143B-437.131. Annual report. 51 General Assembly Of North Carolina Session 2025
House Bill 79-First Edition Page 11
(a) The Board shall cause an accurate account of all of the Program's, Trust's, and Board's 1
activities, operations, receipts, and expenditures to be maintained. By October 1 of each year, the 2
Board shall submit to the Governor and the Joint Legislative Commission on Governmental 3
Operations a report detailing the activities, operations, receipts, and expenditures of the Program 4
and Board during the preceding calendar year. The report shall also include projected activities 5
of the Program for the current calendar year and any necessary statutory recommendations and 6
appropriations. 7
(b) Each year, a full audit of the books and accounts of the Board pertaining to those 8
activities, operations, receipts and expenditures, personnel, services, or facilities shall be 9
conducted by a certified public accountant and shall include, but not be limited to, direct and 10
indirect costs attributable to the use of outside consultants, independent contractors, and any other 11
persons who are not State employees for the administration of the Program. For the purposes of 12
the audit, the auditors shall have access to the properties and records of the Program and Board 13
and may prescribe methods of accounting and the rendering of periodic reports in relation to 14
projects undertaken by the Program. 15
"§ 143B-437.132. Implementation. 16
(a) The Board shall establish the Program so that individuals can begin contributing 17
under the Program not later than July 1, 2027. 18
(b) The Board shall not implement the Program if and to the extent the Board determines 19
that the Program is preempted by ERISA. Accordingly, the Board shall implement the Program 20
in a severable fashion to the extent practicable if and to the extent that the Board determines: 21
(1) That a portion or aspect of the Program is preempted by ERISA, in which 22
event the Board shall not implement that portion or aspect of the Program but 23
shall proceed to implement the remainder of the Program to the extent 24
practicable; or 25
(2) That some but not all of the payroll deduction IRA arrangements or other 26
arrangements under the Program are or would be employee benefit plans 27
under ERISA, in which event the Board shall proceed to implement the 28
Program with respect to the other arrangements under the Program to the 29
extent practicable." 30
SECTION 2. There is appropriated from the General Fund to the Department of 31
Commerce the sum of four hundred thousand dollars ($400,000) in nonrecurring funds for the 32
2025-2026 fiscal year and the sum of six hundred thousand dollars ($600,000) in nonrecurring 33
funds for the 2026-2027 fiscal year. The Department shall allocate the funds to the North Carolina 34
Small Business Retirement Savings Program Board (Board) to be used for the following: 35
(1) To enable or facilitate the start-up and continuing operation, maintenance, 36
administration, and management of the North Carolina Small Business 37
Retirement Savings Program (Program) until the Program accumulates 38
sufficient balances and can generate sufficient funding through fees assessed 39
on Program accounts for the Program to become financially self-sustaining. 40
(2) To hire an individual to serve as the initial executive director pursuant to 41
G.S. 143B-437.123(a)(4). The position shall be filled on a time-limited basis, 42
and the individual filling the position shall not be considered a State employee. 43
SECTION 3. This act becomes effective July 1, 2025. 44