Tennessee House Bill HB0013

Tennessee 2023-2024 Regular Session

• Introduced: 12/14/22
• Refer: 1/12/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 4; Title 8; Title 9 and Title 50, relative to retirement.

Impact

The proposed bill outlines that employers with more than five employees will need to facilitate employee contributions to the retirement savings plan unless they already provide a qualified retirement plan. Employers are not required to contribute to their employees' accounts, but they must ensure that their employees have the opportunity to enroll in the Tennessee Retirement Savings Plan. This change is expected to increase participation rates in retirement savings accounts among workers, particularly among smaller employers who may not have previously offered retirement savings options. Overall, the bill aims to address the retirement savings gap among Tennessee residents by providing a state-backed savings plan.

Summary

House Bill 13 seeks to amend Tennessee Code Annotated by establishing a 'Tennessee Retirement Savings Plan' to assist residents in saving for retirement. The bill creates a board responsible for administering the retirement savings program, which is designed to be inclusive of various employee demographics across the state. The plan allows eligible individuals to contribute to their retirement savings accounts through payroll deductions, emphasizing automatic enrollment for employees unless they opt out. The structure aims to streamline the process of retirement savings for employees of participating employers, making it easier for more individuals to accumulate savings for their future retirement.

Sentiment

The sentiment around the bill appears to be generally positive, with a focus on enhancing retirement savings opportunities for workers. Proponents argue that the measure will benefit many Tennesseans who currently lack access to retirement savings plans due to the size of their employers. There is, however, an acknowledgment that some stakeholders may be concerned about the implications this law has on employer autonomy, particularly regarding the mandatory nature of payroll deductions and the potential financial burden related to compliance and administrative costs.

Contention

Opposition to the bill may arise concerning potential burdens placed on small businesses and the logistics of employers managing payroll deductions for a retirement savings plan that is not directly tied to employer contribution. There could also be apprehensions regarding the long-term viability of the retirement savings plan and its dependency on state administration. Furthermore, critics argue that any mandates related to employment could restrict business flexibility, fostering a climate where some employers might reconsider hiring additional staff due to the new requirements.