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SB-807, As Passed Senate, June 17, 2026
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SENATE BILL NO. 807
A bill to create the secure retirement savings program to
provide retirement savings options for certain employees; to
provide for the powers and duties of certain governmental officers
and entities; to require participation in the program by certain
employers; to create the secure retirement savings program fund as
a trust fund outside the state treasury consisting of employee
retirement accounts; to establish the Michigan secure retirement
administrative fund to pay program administrative expenses; to
provide for civil fines; and to require the promulgation of rules.
February 26, 2026, Introduced by Senators CHERRY and CAVANAGH and referred to
Committee on Labor.
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THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act may be cited as the "retirement savings 1
program act". 2
Sec. 2. As used in this act: 3
(a) "Board" means the secure retirement savings board created 4
in section 2 of the secure retirement savings board act. 5
(b) "Department" means the department of treasury. 6
(c) "Employee" means an individual who is 18 years of age or 7
older, is employed by an employer, and has wages allocable to this 8
state during the calendar year for purposes of the income tax act 9
of 1967, 1967 PA 281, MCL 206.1 to 206.847, or an individual who is 10
enrolled in the program. 11
(d) "Employer" means a person or entity engaged in a business, 12
industry, profession, trade, or other enterprise in this state, 13
whether for profit or not-for-profit, that employed 1 or more 14
employees at any time during the previous calendar year, has been 15
in business at least 730 days after the person's or entity's first 16
payroll, and has not offered a qualified retirement plan to any 17
employees, including, but not limited to, a plan qualified under 18
section 401(a), 401(k), 403(a), 403(b), 408(k), 408(p), or 457(b) 19
of the internal revenue code, 26 USC 401, 403, 408, and 457, in the 20
preceding 2 years. 21
(e) "Enrollee" means an employee who is enrolled in the 22
program. 23
(f) "Fund" means the secure retirement savings program fund 24
established under section 4. 25
(g) "Internal revenue code" means the internal revenue code of 26
1986. 27
(h) "IRA" means an individual retirement account under section 28
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408 of the internal revenue code, 26 USC 408, or a Roth IRA under 1
section 408A of the internal revenue code, 26 USC 408A. 2
(i) "Participating employer" means an employer that provides a 3
payroll deposit retirement savings arrangement as provided for by 4
this act for its employees. 5
(j) "Payroll deposit retirement savings arrangement" means an 6
arrangement by which a participating employer allows enrollees to 7
remit payroll deduction contributions to the program. 8
(k) "Program" means the Michigan secure retirement savings 9
program established under section 3. 10
(l) "Wages" means any compensation within the meaning of 11
section 219(f)(1) of the internal revenue code, 26 USC 219, that is 12
received by an employee from an employer or, if authorized by the 13
board, self-employment, during the calendar year. 14
Sec. 3. A retirement savings program in the form of an 15
automatic enrollment payroll deduction IRA, known as the Michigan 16
secure retirement savings program, is established in the 17
department. The board shall administer the program for the purpose 18
of promoting greater retirement savings for private-sector 19
employees in a convenient, low-cost, and portable manner. 20
Sec. 4. (1) The secure retirement savings program fund is 21
established as a trust outside of the state treasury, with the 22
board as its trustee. The fund includes the individual retirement 23
accounts of enrollees, which must be maintained as individual 24
accounts. The fund consists of money received from enrollees 25
through automatic payroll deductions and contributions made under 26
this act. The fund must be operated in a manner determined by the 27
board so that the accounts of enrollees established under the 28
program meet the requirements for IRAs under the internal revenue 29
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code. 1
(2) Money deposited in the fund is not property of this state, 2
and the fund must not be construed to be a department, institution, 3
or agency of this state. Money in the fund must not be commingled 4
with state money, and this state has no claim to or against, or 5
interest in, the money in the fund. 6
Sec. 5. The secure retirement administrative fund is created 7
as a separate trust fund in the state treasury. The department is 8
the administrator of the fund for auditing purposes. The board 9
shall use money in the secure retirement administrative fund to pay 10
for administrative expenses it incurs in the performance of its 11
duties under this act. The board shall use money in the secure 12
retirement administrative fund to cover administrative expenses it 13
incurs in the performance of its duties under this act. The secure 14
retirement administrative fund may receive grants or other money 15
designated for administrative purposes from this state; a unit of 16
federal or local government; or any other person, firm, 17
partnership, or corporation. Any interest or earnings attributable 18
to money in the secure retirement administrative fund must be 19
deposited into the secure retirement administrative fund. Money in 20
the fund at the close of the fiscal year must remain in the fund 21
and must not lapse to the general fund. 22
Sec. 7. The board, the individual members of the board, the 23
trustee appointed under section 8(b), any other agents appointed or 24
engaged by the board, and all persons serving as program staff 25
shall discharge their duties with respect to the program, including 26
in the selection of investment options available to enrollees, 27
solely in the interest of the program's enrollees and beneficiaries 28
as follows: 29
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(a) For the exclusive purposes of providing benefits to 1
enrollees and defraying reasonable expenses of administering the 2
program. 3
(b) By investing with the care, skill, prudence, and diligence 4
under the prevailing circumstances that a prudent person acting in 5
a like capacity and familiar with those matters would use in the 6
conduct of an enterprise of a like character and with like aims. 7
(c) By using any contributions paid by enrollees into the 8
trust exclusively for the purpose of paying benefits to the 9
enrollees of the program, for the cost of administration of the 10
program, and for investments made for the benefit of the program. 11
Sec. 8. In addition to the other duties and responsibilities 12
stated in this act, the board shall do all of the following: 13
(a) Cause the program to be designed, established, and 14
operated in a manner that does all of the following: 15
(i) Accords with best practices for retirement savings 16
vehicles. 17
(ii) Maximizes participation, savings, and sound investment 18
practices. 19
(iii) Maximizes simplicity, including ease of administration for 20
participating employers and enrollees. 21
(iv) Provides an efficient product to enrollees by pooling 22
investment funds. 23
(v) Ensures the portability of benefits, including the ability 24
for enrollees to roll over funds into other retirement accounts and 25
roll over funds from other retirement accounts into program 26
accounts. 27
(b) Appoint a trustee to the fund in compliance with section 28
408 of the internal revenue code, 26 USC 408. 29
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(c) Contract as necessary for the administration of the 1
program and fund, including, but not limited to, retaining and 2
contracting with investment managers, private financial 3
institutions, other financial and service providers, consultants, 4
actuaries, counsel, auditors, third-party administrators, and other 5
professionals. 6
(d) Conduct a review of the performance of any investment 7
vendor at least every 4 years, including, but not limited to, a 8
review of returns, fees, and customer service. 9
(e) Determine the number and duties of staff members needed to 10
administer the program and assemble the staff, including, as 11
needed, employing staff, appointing a program administrator, and 12
entering into contracts with the state treasurer to make employees 13
of the department available to administer the program. 14
(f) Cause money in the fund to be held and invested as pooled 15
investments with a view to achieving cost savings through 16
efficiencies and economies of scale. 17
(g) Design and establish the process for enrollment under 18
section 14, including the process by which an employee can opt not 19
to participate in the program, select a contribution level, select 20
an investment option, and terminate participation in the program. 21
(h) Evaluate and, if feasible, establish a process by which an 22
individual who is not considered an employee under the program, 23
including, but not limited to, a self-employed individual, or is an 24
employee of an employer that is not covered by the program may 25
voluntarily enroll in and make contributions to the program. 26
(i) Accept any grants, appropriations, or other money from 27
this state, any unit of federal, state, or local government, or any 28
other person, firm, partnership, or corporation solely for deposit 29
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into the fund, whether for investment or administrative purposes. 1
(j) Evaluate the need for, and procure as needed, insurance 2
against any loss in connection with the property, assets, or 3
activities of the program, and indemnify as needed each member of 4
the board from personal loss or liability resulting from a member's 5
action or inaction as a member of the board. 6
(k) Make provisions for paying administrative costs and 7
expenses for the creation, management, and operation of the 8
program, including the costs associated with subdivisions (e), (g), 9
and (h), section 19(5), and section 2(2) of the secure retirement 10
savings board act. Subject to appropriation, this state may pay 11
administrative costs associated with the creation and management of 12
the program until sufficient assets are available in the fund for 13
that purpose. The board shall keep annual administrative expenses 14
as low as possible. 15
(l) Set minimum and maximum contribution levels in accordance 16
with limits established for IRAs in the internal revenue code. 17
(m) Facilitate education and outreach to employers and 18
employees. 19
(n) Facilitate program compliance with all applicable 20
requirements under the internal revenue code, including tax 21
qualification requirements or any other applicable law and 22
accounting requirements. 23
(o) Carry out the duties and obligations of the program in an 24
effective, efficient, and low-cost manner. 25
(p) Exercise any other powers reasonably necessary to 26
effectuate the program purposes and objectives. 27
(q) Deposit into the secure retirement administrative fund all 28
grants, gifts, donations, fees, and earnings from investments from 29
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the fund that are used to recover administrative costs. All 1
expenses of the board must be paid from the Michigan secure 2
retirement administrative fund. 3
Sec. 9. The board shall prepare and adopt a written statement 4
of investment policy that includes a risk management and oversight 5
program. The investment policy must prohibit the board, program, 6
and fund from borrowing for investment purposes. The risk 7
management and oversight program must be designed to ensure that an 8
effective risk management system is in place to monitor the risk 9
levels of the program and fund portfolio, to ensure that the risks 10
taken are prudent and properly managed, to provide an integrated 11
process for overall risk management, and to assess investment 12
returns and risk to determine if the risks taken are adequately 13
compensated compared to applicable performance benchmarks and 14
standards. The board shall consider the statement of investment 15
policy and any changes in the investment policy at a public 16
hearing. The investment policy and changes to the investment policy 17
must be posted on the board's or department's website at least 30 18
days before implementation of the policy. 19
Sec. 10. (1) The board may engage an investment manager or 20
managers to invest the fund and any other assets of the program. 21
Money in the fund may be invested or reinvested by the state 22
treasurer or may be invested in whole or in part under contract 23
with private investment managers selected by the board. In 24
selecting the investment manager or managers, the board shall take 25
into consideration the investment manager's fees and charges to 26
reduce the program's administrative expenses. 27
(2) The investment manager or managers shall provide the 28
reports the board considers necessary for the board to oversee each 29
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investment manager's performance and the performance of the fund. 1
Sec. 11. (1) The board may enter into intergovernmental 2
agreements with departments of this state to further the successful 3
implementation and operation of the program, and the departments 4
shall cooperate with the board. 5
(2) Each department of this state shall cooperate as requested 6
by the board in the performance of the board's duties under this 7
act, including, unless otherwise prohibited, the sharing of 8
relevant data as the parties mutually agree. 9
Sec. 12. Investment earnings and investment losses must be 10
allocated to individual program accounts as established by the 11
board. An enrollee's retirement savings benefit under the program 12
must be an amount equal to the balance in the individual's program 13
account. This state is not liable for any payment of benefits to 14
any enrollee in the program. 15
Sec. 13. (1) Before opening the program for enrollment, the 16
board shall design an employer information packet and an employee 17
information packet. The employer information packet and employee 18
information packet must include background information on the 19
program, appropriate disclosures for employees, and information 20
regarding the website described in section 14(7). 21
(2) The board shall provide for the contents of both the 22
employee information packet and the employer information packet. 23
(3) The employee information packet must include a disclosure 24
form. The disclosure form must explain, but not be limited to 25
explaining, all of the following: 26
(a) The benefits and risks associated with making 27
contributions to the program. 28
(b) The mechanics of how to make contributions to the program. 29
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(c) How to opt out of the program. 1
(d) How to participate in the program with a level of employee 2
contributions other than the contributions described in section 3
14(3). 4
(e) The process for withdrawing retirement savings. 5
(f) How to obtain additional information about the program. 6
(g) That employees seeking financial advice should contact 7
financial advisors, that participating employers are not in a 8
position to provide financial advice, and that participating 9
employers are not liable for decisions employees make under this 10
act. 11
(h) That the program is not a qualified retirement plan. 12
(i) That the program fund is not guaranteed by this state. 13
(4) The employee information packet must also include a form, 14
including an electronic form, for an employee to note the 15
employee's decision to opt out of participation in the program or 16
elect to participate with a level of employee contributions other 17
than the contributions described in section 14(3). 18
(5) The board shall determine who will supply the employee 19
information packet to employees after the participating employer 20
registers for the program. 21
Sec. 14. (1) Except as otherwise provided in section 21, the 22
program must be implemented not later than 24 months after the 23
effective date of this act. Subsections (2) to (6) apply after the 24
board opens the program for enrollment. 25
(2) An employee who has not opted out of participation in the 26
program under the process under section 13(4) must be automatically 27
enrolled in the program. 28
(3) An enrollee may select a contribution level into the fund. 29
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The level may be expressed as a percentage of wages or as a dollar 1
amount up to the deductible amount for the enrollee's taxable year 2
under section 408A(c) of the internal revenue code, 26 USC 408A. An 3
enrollee may change the enrollee's contribution level at any time, 4
subject to rules promulgated by the board. The board shall 5
establish default, minimum, and maximum employee contribution rates 6
and an escalation schedule to automatically increase each 7
enrollee's contribution rate annually until the contribution rate 8
is equal to the maximum contribution rate. The maximum default 9
contribution rate established by the board must not exceed 15% of 10
the enrollee's wages. 11
(4) An enrollee may change the enrollee's investment selection 12
among available options at any time, subject to rules promulgated 13
by the board. 14
(5) An employer retains the option to set up a qualified 15
retirement plan, such as a defined benefit plan, 401(k) plan, 16
Simplified Employee Pension Plan (SEP), or Savings Incentive Match 17
Plan for Employees (SIMPLE) plan, or a similar program offered by a 18
trade association or chamber of commerce instead of participating 19
in the program. 20
(6) An enrollee may terminate the enrollee's participation in 21
the program at any time in a manner prescribed by the board. 22
(7) The board shall establish and maintain a website designed 23
to assist employers in identifying private sector providers of 24
qualified retirement plans that can be set up by the employer 25
rather than participating in the program under this act. The board 26
shall provide public notice of the availability of and the process 27
for inclusion on the website before it becomes publicly available. 28
The website must be available to the public before the board opens 29
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the program for enrollment, and the website address must be 1
included on any website posting or other materials regarding the 2
program offered to the public by the board. 3
(8) The board shall establish an implementation timeline that 4
requires that employers enroll their employees in the program. The 5
timeline must include the date by which an employer must begin 6
enrollment of its employees in the program and the date by which 7
enrollment must be complete. The board shall adopt the 8
implementation timeline at a public meeting of the board and shall 9
publicize the implementation timeline. The board shall provide 10
advance notice to employers of their enrollment date and the amount 11
of time to complete enrollment. 12
Sec. 15. (1) Employee contributions deducted by the 13
participating employer through payroll deduction must be paid by 14
the participating employer to the program fund using 1 or more 15
payroll deposit retirement savings arrangements established by the 16
board, by 1 of the following times: 17
(a) On or before the last day of the month following the month 18
in which the compensation otherwise would have been payable to the 19
employee in cash. 20
(b) Before a later deadline prescribed by the board for making 21
the payments, but not later than the due date for the deposit of 22
tax required to be deducted and withheld relating to collection of 23
income tax at source on wages or for the deposit of tax required to 24
be paid under the employment security insurance system for the 25
payroll period to which the payments relate. 26
(2) If a participating employer or its agent willfully fails 27
to remit any portion of an employee contribution in the time period 28
specified in this subsection, the employer and all agents 29
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responsible for the nonremission are guilty of a misdemeanor 1
punishable by a fine of not more than $5,000.00. 2
Sec. 16. (1) This state has no duty and is not liable to a 3
party for the payment of any retirement savings benefits accrued by 4
an enrollee under the program. Any financial liability for the 5
payment of retirement savings benefits in excess of money available 6
under the program must be borne solely by the entities with whom 7
the board contracts to provide insurance to protect the value of 8
the program. 9
(2) A state board, commission, or agency, or any officer, 10
employee, or member of a state board, commission, or agency is not 11
liable for any loss or deficiency resulting from particular 12
investments selected under this act, except for any liability that 13
arises out of a breach of fiduciary duty under section 7. 14
Sec. 17. (1) A participating employer is not liable for an 15
employee's decision to participate in, or opt out of, the program 16
or for the investment decisions of the board or of any enrollee. 17
(2) A participating employer is not a fiduciary, and is not 18
considered to be a fiduciary, with regard to the program. A 19
participating employer has no responsibility for the 20
administration, investment, or investment performance of the 21
program. A participating employer is not liable as to investment 22
returns, program design, or benefits paid to enrollees. 23
Sec. 18. (1) By July 1 of each year after the program begins 24
operating, the board shall submit to the governor and the standing 25
committees of the senate and house of representatives concerned 26
with retirement issues a report prepared by the board, including, 27
at a minimum, a summary of the benefits provided by the program, 28
including the number of enrollees in the program; the percentage 29
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and amounts of investment options and rates of return; and any 1
other information that is relevant to make a full, fair, and 2
effective disclosure of the operations of the program and the fund. 3
(2) The board shall provide, at least annually, a report to 4
each enrollee of the contributions and investment income allocated 5
to, withdrawals from, and balances in the enrollee's program 6
account for the reporting period. The board may also include any 7
other information regarding the program as the board may determine. 8
Sec. 19. (1) An employer that fails without reasonable cause 9
to enroll an employee in the program within the time prescribed 10
under section 14 is subject to a penalty equal to the following: 11
(a) Two hundred fifty dollars for each employee for each 12
calendar year or portion of a calendar year during which the 13
employee neither was enrolled in the program nor had opted out of 14
participation in the program. 15
(b) For each calendar year beginning after the date a penalty 16
has been assessed with respect to an employee, $500.00 for any 17
portion of that calendar year during which an employee who has not 18
opted out of participation in the program under the process 19
described in section 13(4) is not enrolled in the program. 20
(2) After determining that an employer is subject to penalty 21
under this section for a calendar year, the board shall issue a 22
notice of proposed assessment to the employer, stating the number 23
of employees for which the penalty is proposed under subsection 24
(1)(a) and the number of employees for which the penalty is 25
proposed under subsection (1)(b) for the calendar year, and the 26
total amount of fines proposed. 27
(3) Not later than 30 days after receiving an order from the 28
board to pay a fine under this section, an employer may request a 29
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hearing to review the order by filing a written request with the 1
board. The board shall conduct the review as a contested case under 2
the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 3
to 24.328. The decision of the board becomes final as follows: 4
(a) If no further action for review of the decision is taken 5
under the administrative procedures act of 1969, 1969 PA 306, MCL 6
24.201 to 24.328, on the date on which the time for requesting the 7
review has expired. 8
(b) If a timely action for review of the decision is taken 9
under the administrative procedures act of 1969, 1969 PA 306, MCL 10
24.201 to 24.328, on the date all proceedings in court for the 11
review of the assessment have terminated or the time for further 12
appeal has expired. 13
(4) As soon as practicable after the penalties specified in a 14
notice of proposed assessment are no longer subject to 15
administrative or judicial review as set forth in subsection 16
(3)(b), the board shall notify the employer liable for any unpaid 17
portion of the assessment, stating the amount due and requiring 18
payment. If an employer neglects or refuses to pay the entire 19
liability shown on the notice not later than 10 days after the 20
notice is issued, the unpaid amount is a lien in favor of this 21
state on all property and rights to property, whether real or 22
personal, belonging to the employer, and the provisions of the 23
income tax act of 1967, 1967 PA 281, MCL 206.1 to 206.847, 24
regarding liens, levies, and collection actions for unpaid 25
liabilities, including the periods for taking any action, apply to 26
the unpaid amount. 27
(5) Civil fines collected under this act and fees collected 28
under subsection (6) must be deposited into the secure retirement 29
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administrative fund. The board may, subject to appropriation, use 1
money in the secure retirement and administrative fund to cover 2
expenses it incurs in performing its duties under this act. 3
(6) The board may enter into an agreement with the department 4
or another state agency to fulfill the enforcement duties under 5
this section. The department may charge the board a reasonable fee 6
for its costs in performing under an agreement under this 7
subsection to be paid out of the secure retirement and 8
administrative fund. 9
(7) Solely for purposes of any provision of state law allowing 10
the department or any other agency of this state to offset an 11
amount owed to a taxpayer against a tax liability of that taxpayer 12
or allowing the department to offset an overpayment of tax against 13
any liability owed to this state, a penalty assessed under this 14
section is considered to be a tax liability of the employer and any 15
refund due to an employer is considered to be an overpayment of tax 16
of the employer. 17
(8) Except as provided in this subsection, all information 18
received by the board or department from returns filed by an 19
employer or from any investigation conducted under this act must be 20
accorded the same confidentiality as facts or information obtained 21
in connection with the administration of a tax. This information is 22
exempt from disclosure under section 28(1)(f) of 1941 PA 122, MCL 23
205.28, and is exempt from disclosure under the freedom of 24
information act, 1976 PA 442, MCL 15.231 to 15.246. The information 25
may be used for official purposes within the board or department or 26
in accordance with official procedures for collecting penalties 27
assessed under this act. This subsection does not prohibit the 28
board or treasurer or any authorized delegate from publishing or 29
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making available to the public reasonable statistics concerning the 1
operation of this act in which the contents of returns are grouped 2
into aggregates in a way that the specific information of any 3
employer is not disclosed. This subsection does not prohibit the 4
board or treasurer or any authorized delegate from divulging 5
information to an authorized representative of the employer or to 6
any person in accordance with a request or authorization made by 7
the employer or by an authorized representative of the employer. 8
(9) This section applies 9 months after the board notifies the 9
state treasurer that the program has been implemented. On receipt 10
of notification from the board, the department shall immediately 11
post on its website a notice stating the date that this section 12
becomes operative. The notice must include a statement that as an 13
alternative to enrolling employees in the program, employers may 14
sponsor a qualified plan, including, but not limited to, a defined 15
benefit plan, 401(k) plan, Simplified Employee Pension Plan (SEP), 16
or Savings Incentive Match Plan for Employees (SIMPLE) plan. The 17
board shall provide a link to the website described in section 18
14(7). 19
Sec. 21. If the board does not obtain adequate money to 20
implement the program within the time frame set forth under section 21
14, the board may delay the implementation of the program and the 22
dates that sections dependent on an operating program begin to 23
apply must be correspondingly extended. 24
Sec. 22. The department may enter into agreements with other 25
states that offer an auto-IRA retirement program at the request of 26
the board to achieve greater mutual bargaining power and reduce the 27
costs of plan administration and plan operations. The department, 28
on behalf of the board, may, for any purpose consistent with the 29
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board's fiduciary duty to participants, enter into agreements with 1
other states that offer auto-IRA retirement programs. As used in 2
this section, "auto-IRA retirement program" means a state-3
facilitated retirement savings plan involving payroll deduction 4
IRAs for workers whose employers do not offer a qualified 5
retirement plan. 6
Enacting section 1. This act does not take effect unless 7
Senate Bill No. 808 of the 103rd Legislature is enacted into law. 8