BILL REQ. #: H-1655.1
| State of Washington | 60th Legislature | 2007 Regular Session |
Read first time 02/06/2007. Referred to Committee on Appropriations.
AN ACT Relating to creating the Washington voluntary retirement accounts program; and adding new sections to chapter 41.50 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The legislature finds that many workers do
not have access to an employment-based retirement plan. Workers who
are unable to build up pensions and savings risk living on low incomes
in their old age and are more likely to become dependent on state
services. The Washington voluntary retirement accounts program
provides a simple and inexpensive way for workers to save for
retirement and employers to offer an employee benefit.
NEW SECTION. Sec. 2 The definitions in this section apply
throughout this subchapter unless the context clearly requires
otherwise.
(1) "Program" means the Washington voluntary retirement accounts
program created under section 3 of this act.
(2) "Enrollee" means any worker in this state that is enrolled in
the program.
(3) "Participating employer" means any private employer, with a
place of business in this state, and with employees that have enrolled
in the program.
NEW SECTION. Sec. 3 To the extent that funding is appropriated
in the operating budget specifically for this purpose, the Washington
voluntary retirement accounts program is created. The director is
responsible for the implementation and operation of the Washington
voluntary accounts program, directly or by contract.
NEW SECTION. Sec. 4 Prior to the enrollment of individuals in
the Washington voluntary retirement accounts program, the director
shall design a plan for the operation of the Washington voluntary
retirement accounts program, and then seek approval from the federal
internal revenue service to offer the plan to Washington workers on a
tax-qualified basis. The plan must include the option for enrollees to
roll pretax contributions into an individual retirement account or
another eligible retirement plan after ceasing participation in the
program.
NEW SECTION. Sec. 5 Enrollment in the Washington voluntary
retirement accounts program is not an entitlement and must not result
in expenditures that exceed the amount that has been appropriated for
the program in the operating budget or is available in the Washington
voluntary retirement accounts partnership program account. If it
appears that continued enrollment will result in expenditures exceeding
the appropriated level for a particular fiscal year, the director may
freeze new enrollments in the program and establish a waiting list of
eligible workers, or reduce enrollments.
NEW SECTION. Sec. 6 Following the design and approval of the
program under section 4 of this act, the director shall adopt all rules
necessary for the implementation and operation of the Washington
voluntary retirement accounts program. As part of the rule development
process, the director shall consult with employers, workers, private
sector retirement plan administrators and providers, and any other
individuals or entities that the director determines relevant to the
development of an effective and efficient method for operating the
program.
NEW SECTION. Sec. 7 The Washington voluntary retirement accounts
partnership program account is hereby established in the custody of the
state treasurer. Any nonstate funds collected for the program must be
deposited in the account. Moneys in the account must be used
exclusively for the purposes of administering the program, including
for the design and qualification of the program, supporting the
administrative cost of enrolling individuals, and providing information
about the program. Only the director or a designee may authorize
expenditures from the account. The account is subject to the allotment
procedures under chapter 43.88 RCW, but an appropriation is not
required for expenditures.
NEW SECTION. Sec. 8 Private employers shall provide employees
with the opportunity to enroll in the Washington voluntary retirement
accounts program, including providing for payroll deductions for those
employees that enroll in the program. Employers with employees
enrolled in the Washington voluntary retirement accounts program are
authorized to contract with the enrolled employees to defer or
contribute a portion of the enrolled employees' compensation, in
accordance with the program rules.
NEW SECTION. Sec. 9 The director shall report biennially to the
relevant committees of the legislature on the effectiveness and
efficiency of the program, including the levels of enrollment, the
financial status of the program, and the retirement savings levels of
participating enrollees.
NEW SECTION. Sec. 10 No state board, commission, or agency, or
any officer, employee, or member is liable for any loss or deficiency
resulting from investments selected by any enrollee.
NEW SECTION. Sec. 11 Sections 1 through 10 of this act are each
added to chapter