Representative Mike McFall (D-Hazel Park) introduced House Bill 5461 creating the MI Secure Retirement program, allowing employees to save for retirement even if their employer doesn’t offer a program to do so. At no cost to employers, the proposal would allow a worker to create and deposit a portion of their wages into an individual retirement account.
Key Points:
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- The Department of Treasury would administer the program.
- A seven-member board would provide oversight, with the state treasurer serving as chair.
- An individual could opt out of the program.
- Participating employees can access their savings in cases of financial emergencies or setbacks without penalty.
- Fifteen states have created automated savings program.
- Nearly 42% of private-sector workers don’t have a savings plan at work.
- Pew estimates that Michigan’s cost from insufficient savings will total $11.2 billion cumulatively from 2020 through 2040.
Next Steps:
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- The bill was referred to the House Labor Committee for consideration.
