House approves voluntary retirement plan exchange to expand small-business options

Summary

The House passed first substitute HB 250 to create a voluntary marketplace where small businesses without employer-sponsored retirement plans can join a state-facilitated platform offering auto-IRA or 401(k)-style options. Sponsors said participation is voluntary and the private sector would manage funds; the bill passed 71–1.

Representative Joseph Eliasson presented HB 250, describing it as a voluntary marketplace that enables small businesses without retirement plans to offer employees access to retirement savings through a state-facilitated platform. "This is not a mandate plan. But they can choose to add their company to this platform and give access to either a simple auto IRA plan or a 401(k)-type plan," Eliasson said.

Supporters, including Representatives Shelly and Thompson, described the bill as lowering hurdles for employers and helping hundreds of thousands of employees who lack access to employer-sponsored plans. The sponsor emphasized private-sector management of funds and said the program is intended to avoid federal mandates.

The House adopted a substitute and passed the bill by voice/roll call (71 yes, 1 no). The bill will be transmitted to the Senate.