Public finance; creating the Oklahoma Prosperity Act Program; providing procedures. Effective date.
Impact
This legislation has significant implications for public finance and state regulations surrounding retirement savings. By creating an infrastructure for auto-enrollment IRAs, it seeks to increase participation in retirement savings among covered employees, which could lead to improved financial security for Oklahomans in their retirement years. The State Treasurer will oversee the program, including appointing fiduciaries who will manage the trust and investments related to these IRAs. Furthermore, the assets in these specially designated IRAs will be exempt from state income tax, further incentivizing participation.
Summary
Senate Bill 582 establishes the Oklahoma Prosperity Act Program, aimed at facilitating retirement savings for employees by allowing them to contribute to Individual Retirement Accounts (IRAs) through automatic withholding of wages. Employers participating in the program will be responsible for making available the option for their employees to enroll in this program. The bill mandates that employees will be automatically enrolled unless they opt out, with a default contribution rate set at 3% of their wages. All contributions will enjoy favorable federal income tax treatment under the Internal Revenue Code.
Contention
Potential points of contention may arise relating to employer liability and the extent of fiduciary duties imposed. While the bill addresses that employers will not assume fiduciary roles or responsibilities regarding the IRAs, questions may arise about the accountability of the financial institutions managing these investments. This could lead to disparities in how retirement accounts are managed and the quality of investment options presented to enrollees. Critics might raise concerns that without proper safeguards, employees could be left vulnerable to poor investment management or uninformed financial decisions.
Public finance; Oklahoma Public Finance Protection Act; terms; standard of care; non-pecuniary; factors; authority; shares; Attorney General; codification; effective date.
Public finance; Oklahoma Public Finance Protection Act; terms; standard of care; non-pecuniary factors; authority; shares; Attorney General; codification; effective date.
Public finance; Oklahoma Public Finance Protection Act; terms; standard of care; non-pecuniary factors; authority; shares; Attorney General; codification; effective date.
Public finance; creating the Oklahoma Prosperity Act Trust; requiring State Treasurer to develop certain trusts and IRAs established under program. Effective date.
State employee health insurance; funding to provide flexible benefit allowance; professional risk management program; continuance of health and dental insurance benefits; rates and benefits; disability insurance program for state employees; collections; flexible benefit revolving fund; flexible benefit dollars in the State Employees Benefits Act; effective date.