Establishing a retirement savings plan trust, and including implementation provisions

This bill creates the Iowa retirement savings plan trust under the office of treasurer of state for the purpose of helping Iowans save for retirement. The bill provides that the trust be operated so that, for federal tax purposes, it meets the requirements of a retirement plan as provided by the Internal Revenue Code and functions according to other federal law. The state treasurer is the trustee of the trust and has numerous powers, as specified in the bill, for the purpose of carrying out the purpose of the trust. Powers granted the treasurer of state to effectuate the purpose of the trust include entering into agreements with trust participants and employers, investing moneys in the trust, and entering into any agreements or contracts necessary to carry out the purposes of the trust. The bill provides that individuals who are employed for compensation in this state are automatically enrolled in the trust by the treasurer of state with a default contribution rate set by the treasurer. A participant may opt out of the trust at any time. Employers may allow employees to have their contributions deducted from their paychecks. Employer contributions to the trust are not required, and if an employer chooses to make contributions, the employer has no proprietary right to the moneys in the trust. The bill requires the treasurer of state to provide participants with reports on the trust fund at least once per year. The bill also requires that all participant account information be maintained as confidential, except as necessary to administer the trust or as agreed to in writing by the person who provides the information or is the subject of the information. The bill prohibits local governments from establishing or offering retirement plans for anyone other than public employees. The bill provides that the state, the treasurer of state, and the trust may not guarantee any rate of return on any contributions to the trust and are not liable for any loss incurred by any person as a result of participating in the trust. The bill requires the treasurer to submit an annual audited financial report on the operations of the trust. The bill provides that when the requirements of the bill are enacted, the treasurer shall not allow individuals to make contributions to the trust earlier than July 1, 2025.