HB 775

Abstract

Virginia College Savings Plan; stakeholder group to analyze private retirement plans; report. Directs the Virginia College Savings Plan to convene a stakeholder group, analyze private retirement options and develop recommendations, and report to the General Assembly by December 15, 2020. The scope of the study would include (i) an examination of potential retirement savings options for self-employed individuals, part-time employees, and full-time employees whose employers do not offer a retirement savings plan; (ii) the level of interest by Virginia employers in participating in a voluntary state-sponsored private retirement option; (iii) the likely costs to start up such a plan and an estimate of time to reach self-sufficiency and potential funding options; (iv) the experience of other states that have implemented or are implementing a state-sponsored private retirement solution for employers and employees; and (v) the appropriate state agency and structure to implement the solution.

Multiple employer retirement plan for private employers and their employees. Directs the governing board of the Virginia College Savings Plan (the Board) to establish the Multiple Employer Retirement Plan (the Plan). The Plan shall allow employees of private employers in the Commonwealth to contribute to a defined contribution retirement plan overseen by the Board. The bill allows all self-employed individuals, sole proprietors, and nongovernmental employers to allow their employees to participate in the Plan. It provides for automatic enrollment of an employer's employees if such employer chooses to participate in the Plan. The bill authorizes the Board to contract with third parties to implement and administer the Plan. The Plan shall allow an enrollee to contribute to an account at a default rate and modify his contributions within the parameters of the Internal Revenue Code. The Plan allows but does not require a participating employer to contribute to the account of any enrollee. The bill prohibits the Commonwealth from guaranteeing a rate of return or interest rate on any contribution and indemnifies it from losses incurred through the Plan. The bill contains a reenactment clause and directs the Virginia College Savings Plan to analyze current state and federal retirement programs, other retirement savings options, costs, and the level of interest in such a plan. The Virginia College Savings Plan shall report its findings and recommendations to the General Assembly on or before December 15, 2020.

My Virginia Plan; multiple employer retirementplan for private employers and their employees. Establishes theMy Virginia Plan Board (the Board) and directs the Board to createthe My Virginia Plan (the Plan) to allow employees of private employersin the Commonwealth to contribute to a defined contribution retirementplan overseen by the Board. The bill allows all self-employed individuals,sole proprietors, and nongovernmental employers to allow their employeesto participate in the Plan. It provides for automatic enrollmentof an employer's employees if such employer chooses to participatein the Plan. The bill authorizes the Board to contract with thirdparties to implement and administer the Plan. ThePlan shall allow an enrollee to contribute to an account at a defaultrate and modify his contributions within the parameters of the InternalRevenue Code. The Plan allows but does not require a participating employer to contribute to the account of any enrollee. The bill prohibitsthe Commonwealth from guaranteeing a rate of return or interest rateon any contribution and indemnifies it from losses incurred throughthe Plan. The bill requires the Board to establish the Plan by July1, 2022.