Mississippi Work and Save Program; create.

H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~ G3/5
26/HR26/R1169
PAGE 1 (ELS\KW)

To: State Affairs; Ways and
Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Steverson

HOUSE BILL NO. 631

AN ACT TO CREATE THE MISSISSIPPI WORK AND SAVE PROGRAM, WHICH 1
IS A RETIREMENT SAVINGS PROGRAM SPONSORED BY THE STATE FOR CERTAIN 2
EMPLOYERS WHO DO NOT ALREADY OFFER A RETIREMENT PLAN THAT WILL 3
ALLOW THOSE EMPLOYERS TO OFFER ELIGIBLE EMPLOYEES THE CHOICE TO 4
CONTRIBUTE TO AN INDIVIDUAL RETIREMENT ACCOUNT (IRA) THROUGH A 5
PAYROLL DEDUCTION; TO PROVIDE THE POWERS, AUTHORITY AND DUTIES OF 6
THE STATE TREASURER TO DESIGN, DEVELOP AND IMPLEMENT THE PROGRAM; 7
TO PROVIDE THAT THE IRA TO WHICH CONTRIBUTIONS ARE MADE WILL BE A 8
ROTH IRA AND THE STANDARD PACKAGE WILL BE A ROTH IRA WITH A TARGET 9
DATE FUND INVESTMENT AND A SPECIFIED CONTRIBUTION PERCENTAGE; TO 10
PROVIDE CERTAIN PROTECTION FROM LIABILITY FOR EMPLOYERS IN THE 11
PROGRAM AND FOR THE STATE; TO PROVIDE FOR THE CONFIDENTIALITY OF 12
PARTICIPANT AND ACCOUNT INFORMATION; TO CREATE THE MISSISSIPPI 13
WORK AND SAVE ADMINISTRATIVE FUND AS A SPECIAL FUND IN THE STATE 14
TREASURY FOR THE PURPOSES AUTHORIZED IN THIS ACT; AND FOR RELATED 15
PURPOSES. 16
WHEREAS, the Legislature finds that too many Mississippi 17
citizens have no or inadequate savings for retirement, and many 18
Mississippi working families, including employees, independent 19
contractors, and the self-employed, have no access to an 20
employer-sponsored retirement plan or program or any other easy 21
way to save at work; and 22
WHEREAS, it is the policy of the state to assist the 23
Mississippi private-sector workforce, particularly moderate- and 24
lower-income working households, to voluntarily save for 25
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 2 (ELS\KW)

retirement, including by facilitating saving in individual 26
retirement accounts (IRAs) AND by encouraging employers to adopt 27
retirement savings and other retirement plans for employees in the 28
state; and 29
WHEREAS, more adequate, portable, low-cost and 30
consumer-protective retirement saving by Mississippi households 31
will enhance their retirement security and ultimately reduce the 32
pressure on state public assistance programs for retirees and 33
other elderly citizens and the potential burden on Mississippi 34
taxpayers to finance such programs; and 35
WHEREAS, the Legislature establishes the Mississippi Work and 36
Save Program to use the services of competent and qualified 37
private-sector entities to administer the program and manage the 38
funds on behalf of the program participants and that shall, to the 39
extent necessary or desirable, endeavor to collaborate, cooperate, 40
coordinate, contract and combine resources, investments and 41
administrative functions with other entities, including retirement 42
savings programs of other states that are compatible with the 43
program, through contracts, agreements, memoranda of 44
understanding, arrangements, partnerships or similar arrangements 45
as appropriate to achieve economies of scale and other 46
efficiencies designed to minimize costs for the program and its 47
participants; and 48
WHEREAS, the Mississippi Affordable College Savings Program 49
(MACS) has demonstrated the feasibility of a public-private 50
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 3 (ELS\KW)

partnership that outsources investment and administration to 51
assist private citizens of the state to save on a voluntary and 52
cost-efficient basis; NOW, THEREFORE, 53
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 54
SECTION 1. Title. This act shall be known and may be cited 55
as the Mississippi Work and Save Program. 56
SECTION 2. Definitions. For purposes of this act, the 57
following terms have the meanings as defined in this section, 58
unless the context clearly indicates otherwise: 59
(a) "Covered employee" means an individual who is 60
employed by a covered employer, who has wages or other 61
compensation that is allocable to the state, who is at least 62
eighteen (18) years of age, and who voluntarily participates in 63
the program. The term "covered employee" does not include: 64
(i) Any employee covered under the federal Railway 65
Labor Act (45 USC Section 151). 66
(ii) Any employee on whose behalf an employer 67
makes contributions to a Taft-Hartley multiemployer pension trust 68
fund. 69
(iii) Any individual who is an employee of the 70
federal government, the state or any other state, any county or 71
municipality, or any of the state's, any other state's, or the 72
federal government's units or instrumentalities. 73
(b) "Covered employer" means a person or entity engaged 74
in a business, industry, profession, trade or other enterprise in 75
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 4 (ELS\KW)

the state, whether for profit or not for profit, excluding the 76
federal government, the state, any county, any municipal 77
corporation, or any of the state's or the federal government's 78
units or instrumentalities, and that voluntarily participate in 79
the program. The term "covered employer" does not include an 80
employer that maintains a specified tax-favored retirement plan 81
for its employees or has done so effective in form and operation 82
at any time within the current or two (2) preceding calendar 83
years. If an employer does not maintain a specified tax-favored 84
retirement plan for a portion of a calendar year ending on or 85
after July 1, 2026, and adopts such a plan effective for the 86
remainder of that calendar year, the employer is exempt from 87
"covered employer" status for that remainder of the year. 88
(c) "ERISA" means the Employee Retirement Income 89
Security Act of 1974, as amended (29 USC Section 1001 et seq.). 90
(d) "Internal Revenue Code" means the Internal Revenue 91
Code of 1986, as amended (Title 26 of the United States Code). 92
(e) "IRA" means a traditional or Roth individual 93
retirement account or individual retirement annuity under Section 94
408(a), 408(b) or 408A of the Internal Revenue Code. 95
(f) "Mississippi Work and Save Administrative Fund" or 96
"fund" is the fund established in Section 10 of this act. 97
(g) "Mississippi Work and Save Program" or "program" 98
means the retirement savings program established by this act. 99
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 5 (ELS\KW)

(h) "Participant" means an individual who is 100
contributing to an IRA under the program or has an IRA account 101
balance under the program. 102
(i) "Participating employer" means a covered employer 103
that provides for covered employees a payroll deduction IRA 104
provided for by this act. 105
(j) "Payroll deduction IRA arrangement" or "payroll 106
deduction IRA" means an arrangement by which an employer allows 107
employees to contribute to an IRA through payroll deduction. 108
(k) "Roth IRA" means a Roth individual retirement 109
account or individual retirement annuity under Section 408A of the 110
Internal Revenue Code. 111
(l) "Specified tax-favored retirement plan" means a 112
retirement plan that is tax-qualified under or is described in and 113
satisfies the requirements of Section 401(a), 401(k), 403(a), 114
403(b), 408(k)(Simplified Employee Pension) or 408(p)(SIMPLE-IRA) 115
of the Internal Revenue Code. 116
(m) "Total fees and expenses" means all fees, costs and 117
expenses, including, but not limited to, administrative expenses, 118
investment expenses, investment advice expenses, accounting costs, 119
actuarial costs, legal costs, marketing expenses, education 120
expenses, trading costs, insurance annuitization costs, and other 121
miscellaneous costs. 122
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 6 (ELS\KW)

(n) "Traditional IRA" means a traditional individual 123
retirement account or traditional individual retirement annuity 124
under Section 408(a) or (b) of the Internal Revenue Code. 125
(o) "Trust" means the trust in which the assets of the 126
program are held. Where applicable, except as otherwise 127
specified, references throughout this act to the program generally 128
are intended to refer also to the trust (including the assets, 129
facilities, costs and expenses, receipts, expenditures, 130
activities, operations, administration or management of the 131
trust). 132
SECTION 3. Powers, authority, and duties of the State 133
Treasurer. (1) The State Treasurer shall design, develop and 134
implement the program and, to that end, may conduct market, legal 135
and feasibility analyses. 136
(2) The State Treasurer shall: 137
(a) Cause the program, trust and arrangements and 138
accounts established under the program to be designed and 139
operated: 140
(i) In accordance with best practices for 141
retirement saving vehicles; 142
(ii) To encourage participation, saving, sound 143
investment practices, and appropriate selection of investment 144
options, including any default investments; 145
(iii) To maximize simplicity and ease of 146
administration for covered employers; 147
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 7 (ELS\KW)

(iv) To minimize costs, including by collective 148
investment and other measures to achieve economies of scale and 149
other efficiencies in program design and administration; 150
(v) To promote portability of benefits; and 151
(vi) To avoid preemption of the program by federal 152
law; 153
(b) Arrange for collective, common and pooled 154
investment of assets of the program and trust, including 155
investments in conjunction with other funds with which these 156
assets are permitted by law to be collectively invested, with a 157
view to achieving economies of scale and other efficiencies 158
designed to minimize costs for the program and its participants; 159
(c) Develop and disseminate information designed to 160
educate participants and citizens about the benefits of planning 161
and saving for retirement and information to help them decide the 162
level of participation and savings strategies that may be 163
appropriate for them, including information to increase financial 164
capability and financial literacy; 165
(d) If necessary, determine the eligibility of an 166
employer, employee or other individual to participate in the 167
program; 168
(e) Adopt rules and regulations necessary or advisable 169
for the implementation of this act and the administration and 170
operation of the program consistent with the Internal Revenue Code 171
and regulations thereunder, including to ensure that the program 172
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 8 (ELS\KW)

and arrangements established under the program satisfy all 173
criteria for favorable federal tax treatment and comply, to the 174
extent necessary, with any other applicable federal or state law; 175
(f) Arrange for and facilitate compliance by the 176
program or arrangements established under the program with all 177
applicable requirements for the program under the Internal Revenue 178
Code, including requirements for favorable tax treatment of the 179
IRAs, and under any other applicable federal or state law and 180
accounting requirements, including using its best efforts to 181
implement procedures minimizing the risk that covered employees 182
will contribute more to an IRA than the amount they are eligible 183
for under the Internal Revenue Code to contribute to the IRA on a 184
tax-favored basis, and otherwise providing or arranging for 185
assistance to covered employers and covered employees in complying 186
with applicable law and tax-related requirements in a 187
cost-effective manner. The State Treasurer may establish any 188
processes that he or she reasonably deems necessary or advisable 189
to verify whether an employer is a covered employer (including 190
reference to online data and possible use of questions in employer 191
state tax filings); 192
(g) Employ or retain a program administrator, executive 193
director, staff, trustee, recordkeeper, investment managers, 194
investment advisors, other administrative, professional, expert 195
advisors and service providers, and determine their duties and 196
compensation. The State Treasurer may authorize the executive 197
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 9 (ELS\KW)

director and other officials to oversee requests for proposals or 198
other public competitions and enter into contracts. The State 199
Treasurer may authorize the executive director to enter into 200
contracts, as described in paragraph (m) of this subsection (2), 201
on behalf of the State Treasurer or conduct any business necessary 202
for the efficient operation of the program; 203
(h) Establish procedures for the timely and fair 204
resolution of participant and other disputes related to accounts 205
or program operation; 206
(i) Develop and implement an investment policy that 207
defines the program's investment objectives, consistent with the 208
objectives of the program, and that provides for policies and 209
procedures consistent with those investment objectives. The State 210
Treasurer shall designate appropriate default investments that 211
include a mix of asset classes, such as target date and balanced 212
funds. The State Treasurer shall seek to minimize participant 213
fees and expenses of investment and administration. The State 214
Treasurer shall strive to design and implement investment options 215
available to holders of accounts established as part of the 216
program and other program features that are intended to achieve 217
maximum possible income replacement balanced with an appropriate 218
level of risk in an IRA-based environment consistent with the 219
investment objectives under the policy. The investment options 220
may encompass a range of risk and return opportunities and allow 221
for a rate of return commensurate with an appropriate level of 222
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 10 (ELS\KW)

risk in view of the investment objectives under the policy. The 223
menu of investment options shall be determined taking into account 224
the nature and objectives of the program, the desirability (based 225
on behavioral research findings) of limiting investment choices 226
under the program to a reasonable number, and the extensive 227
investment choices available to participants if they roll over to 228
an IRA outside the program. In accordance with paragraph (g) of 229
this subsection (2), the State Treasurer, to the extent he or she 230
deems it necessary or advisable, in carrying out his or her 231
responsibilities and exercising his powers under this and other 232
paragraphs and provisions of this act, shall employ or retain 233
appropriate entities or personnel to assist or advise him or her 234
or to whom to delegate the carrying out of such responsibilities 235
and exercise of such powers; 236
(j) Discharge his or her duties as a fiduciary with 237
respect to the program solely in the interest of the participants 238
as follows: 239
(i) For the exclusive purpose of providing 240
benefits to participants and defraying reasonable expenses of 241
administering the program; and 242
(ii) With the care, skill, prudence and diligence 243
under the circumstances then prevailing that a prudent person 244
acting in a like capacity and familiar with those matters would 245
use in the conduct of an enterprise of a like character and with 246
like aims; 247
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 11 (ELS\KW)

(k) Cause expenses incurred to initiate, implement, 248
maintain and administer the program to be paid from contributions 249
to, or investment returns or assets of, the program or other money 250
collected by or for the program or pursuant to arrangements 251
established under the program to the extent permitted under 252
federal and state law; 253
(l) Collect application, account or administrative fees 254
and accept any grants, gifts, legislative appropriation, loans and 255
other monies from the state, any unit of federal, state or local 256
government, or any other person, firm or entity to defray the 257
costs of administering and operating the program; 258
(m) Make and enter into competitively procured 259
contracts, agreements, memoranda of understanding, partnerships or 260
other arrangements, to collaborate and cooperate with, and to 261
retain, employ and contract with or for any of the following to 262
the extent necessary or desirable, for the effective and efficient 263
design, implementation and administration of the program 264
consistent with the purposes set forth in this act and to maximize 265
outreach to covered employers and covered employees: 266
(i) Services of private and public financial 267
institutions, depositories, consultants, actuaries, counsel, 268
auditors, investment advisors, investment administrators, 269
investment management firms, other investment firms, third-party 270
administrators, other professionals and service providers, and 271
state public retirement systems; 272
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 12 (ELS\KW)

(ii) Research, technical, financial, 273
administrative and other services; and 274
(iii) Services of other state agencies to assist 275
the State Treasurer in the exercise of his or her powers and 276
duties; 277
(n) Make and enter into contracts, agreements, 278
memoranda of understanding, partnerships or other arrangements to 279
collaborate, cooperate, coordinate, contract or combine resources, 280
investments or administrative functions with other governmental 281
entities, including states or their agencies or instrumentalities 282
that maintain or are establishing retirement savings programs 283
compatible with the program, including collective, common or 284
pooled investments with other funds of other states' programs with 285
which the assets of the program and trust are permitted by law to 286
be collectively invested, to the extent necessary or desirable for 287
the effective and efficient design, administration and 288
implementation of the program consistent with the purposes set 289
forth in this act, including the purpose of achieving economies of 290
scale and other efficiencies designed to minimize costs for the 291
program and its participants and the provisions of Section 4(j) 292
and (l) of this act. 293
(o) Develop and implement an outreach plan to gain 294
input and disseminate information regarding the program and 295
retirement savings in general, including timely information to 296
covered employers regarding the program and how it applies to 297
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 13 (ELS\KW)

them, with special emphasis on their ability at any time to 298
sponsor a specified tax-favored retirement plan that would exempt 299
them from any responsibilities under the program; 300
(p) Cause monies to be held and invested and reinvested 301
under the program; 302
(q) Ensure that all contributions to IRAs under the 303
program may be used only to: 304
(i) Pay benefits to participants under the 305
program; 306
(ii) Pay the cost of administering the program; 307
and 308
(iii) Make investments for the benefit of the 309
program, and that no assets of the program or trust are 310
transferred to the State General Fund or to any other fund of the 311
state or are otherwise encumbered or used for any purpose other 312
than those specified in this subsection (2); 313
(r) Make provision for the payment of costs of 314
administration and operation of the program and trust; 315
(s) Consider whether or not procedures should be 316
promulgated to allow employers that are not covered employers 317
because they are exempt from covered employer status to 318
voluntarily participate in the program by enrolling their 319
employees in payroll deduction IRAs, taking into account, among 320
other considerations, the potential legal consequences and the 321
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 14 (ELS\KW)

degree of employer demand to participate or facilitate 322
participation by employees; 323
(t) Evaluate the need for, and procure if and as 324
needed, insurance against any and all loss in connection with the 325
property, assets or activities of the program, and evaluate the 326
need for, and procure if and as deemed necessary, pooled private 327
insurance; 328
(u) Indemnify, including through the procurement of 329
insurance if and as needed for this purpose, the State Treasurer 330
from personal loss or liability resulting from his or her action 331
or inaction; 332
(v) Collaborate with, and evaluate the role of, 333
financial advisors or other financial professionals, including in 334
assisting and providing guidance for covered employees; and 335
(w) Carry out his or her powers and duties under the 336
program pursuant to this act and exercise any and all other powers 337
as are appropriate for the effectuation of the purposes, 338
objectives and provisions of this act pertaining to the program. 339
(3) The State Treasurer and his or her staff shall not: 340
(a) Directly or indirectly have any interest in the 341
making of any investment under the program or in gains or profits 342
accruing from any such investment; 343
(b) Borrow any program-related funds or deposits, or 344
use any such funds or deposits in any manner, for himself or 345
herself or as an agent or partner of others; or 346
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 15 (ELS\KW)

(c) Become an endorser, surety or obligor on 347
investments made under the program. 348
SECTION 4. Requirements for the Mississippi Work and Save 349
program. The program developed and established under this act 350
must: 351
(a) Allow eligible individuals in the state to choose 352
whether or not to contribute to an IRA under the program, 353
including allowing covered employees in the state the choice to 354
contribute to an IRA through payroll deduction under the program; 355
(b) Allow each covered employer to offer its employees 356
to choose whether or not to contribute to a payroll deduction IRA 357
by permitting automatic enrollment where employees may opt-out of 358
participation; 359
(c) Provide that the IRA to which contributions are 360
made will be a Roth IRA, except that the State Treasurer shall 361
have the authority at any time, to add an option for all 362
participants to affirmatively elect to contribute to a traditional 363
IRA as an alternative to the Roth IRA; 364
(d) Provide that the standard package shall be a Roth 365
IRA with a target date fund investment, and a contribution rate 366
that begins at five percent (5%) of salary or wages (unless the 367
State Treasurer in regulations specifies three percent (3%), four 368
percent (4%), or six percent (6%)), provided that the covered 369
employee can choose to stop participation altogether, to use a 370
traditional IRA and a different investment from among the options 371
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 16 (ELS\KW)

available, and to contribute at a higher or lower contribution 372
rate, subject to the IRA contribution dollar limits applicable 373
under the Internal Revenue Code; 374
(e) Provide on a uniform basis, if and when the State 375
Treasurer so determines, in his or her discretion, for annual 376
increases of each participant's contribution rate, by not more 377
than one percent (1%) of salary or wages per year up to a maximum 378
of eight percent (8%). Any such increases shall apply to 379
participants, as determined by the State Treasurer, by default or 380
only if initiated by affirmative participant election (including 381
as part of the standard package), in either case subject to the 382
IRA contribution limits applicable under the Internal Revenue 383
Code; 384
(f) Provide for direct deposit of contributions into 385
investments under the program; 386
(g) Be professionally managed; 387
(h) Permit no employer contributions by covered 388
employers; 389
(i) Provide for reports on the status of each 390
participant's account to be provided to each participant at least 391
annually; 392
(j) When possible and practicable, use existing or new 393
employer, other private-sector, and public infrastructure and 394
common, collective or pooled investment arrangements to the extent 395
desirable to facilitate and enhance the effectiveness and 396
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 17 (ELS\KW)

efficiency of program outreach, enrollment, contributions, 397
recordkeeping, investment, distributions, compliance and other 398
aspects of program design, administration and implementation 399
consistent with the purposes set forth in this act, including the 400
purpose of achieving economies of scale and other efficiencies 401
designed to minimize costs for the program and its participants 402
and the provisions of paragraph (l) of this section; 403
(k) Provide that each account holder owns the 404
contributions to or earnings on amounts contributed to his or her 405
account under the program and that the state and employers have no 406
proprietary interest in those contributions or earnings; 407
(l) Be designed and implemented in a manner consistent 408
with federal law, including favorable federal tax treatment, to 409
the extent that it applies and is consistent with the program not 410
being preempted by ERISA; 411
(m) Make provision for the participation in the program 412
of individuals who are not employees; 413
(n) Keep total fees and expenses as low as practicable 414
and in any event each year not in excess of seventy-five 415
hundredths of one percent (0.75%) of the total assets of the 416
program, except that this limit shall not apply during a start-up 417
period of three (3) years beginning with the initial 418
implementation of the program; 419
(o) Establish rules and procedures governing the 420
distribution of funds from the program, including such 421
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 18 (ELS\KW)

distributions as may be permitted or required by the program and 422
any applicable provisions of tax laws, with the objectives of 423
maximizing financial security in retirement, helping to protect 424
spousal rights, and assisting participants with the challenges of 425
decumulation of savings. The State Treasurer shall have the 426
authority, in his or her discretion, to provide for one or more 427
reasonably priced distribution options to provide a source of 428
fixed regular retirement income, including income for life or for 429
the participant's life expectancy (or for joint lives and life 430
expectancies, as applicable); and 431
(p) Establish rules and procedures promoting 432
portability of benefits, including the ability to make tax-free 433
rollovers or transfers from IRAs under the program to other IRAs 434
or to tax-qualified plans that accept such rollovers or transfers 435
provided any roll-over is initiated by participants and not 436
solicited by agents or brokers. 437
SECTION 5. Rules for the Mississippi Work and Save program. 438
The State Treasurer shall adopt rules to implement the program 439
that: 440
(a) Establish the processes for enrollment and 441
contributions to payroll deduction IRAs under the program, 442
including elections by covered employees, withholding by covered 443
employers of employee payroll deduction contributions from wages 444
and remittance for deposit to IRAs, and voluntary enrollment and 445
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 19 (ELS\KW)

contributions by others, including self-employed individuals and 446
independent contractors, through payroll deduction or otherwise; 447
(b) Establish the processes for withdrawals, rollovers 448
and direct transfers from IRAs under the program in the interest 449
of facilitating portability and maximization of benefits; 450
(c) Establish processes for phasing in enrollment of 451
eligible individuals; 452
(d) Conduct outreach to individuals, employers, other 453
stakeholders and the public regarding the program. Specify the 454
contents, frequency, timing and means of required disclosures from 455
the program to covered employees, participants, other individuals 456
eligible to participate in the program, covered employers and 457
other interested parties. These disclosures shall include, but 458
need not be limited to: 459
(i) The benefits associated with tax-favored 460
retirement saving; 461
(ii) The potential advantages and disadvantages 462
associated with contributing to Roth IRAs and, if applicable, 463
traditional IRAs under the program; 464
(iii) The eligibility rules for Roth IRAs and, if 465
applicable, traditional IRAs; 466
(iv) That the individual (and not the employer, 467
the state, any state official or the program) will be solely 468
responsible for determining whether, and, if so, how much, the 469
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 20 (ELS\KW)

individual is eligible to contribute on a tax-favored basis to an 470
IRA; 471
(v) The penalty for excess contributions to IRAs 472
and the method of correcting excess contributions; 473
(vi) Instructions for enrolling, making elections 474
to contribute or to decline to contribute, and making elections 475
regarding contribution rates, type of IRA and investments; 476
(vii) Instructions for implementing and for 477
changing the elections; 478
(viii) The potential availability of a saver's tax 479
credit, including the eligibility conditions for the credit and 480
instructions on how to claim it; 481
(ix) That employees seeking tax, investment or 482
other financial advice should contact appropriate professional 483
advisors, and that covered employers are not in a position to 484
provide such advice and are not liable for decisions individuals 485
make in relation to the program; 486
(x) That the payroll deduction IRAs are not 487
intended to be employer-sponsored retirement plans and that the 488
program is not an employer-sponsored retirement plan; 489
(xi) The potential implications of account 490
balances under the program for the application of asset limits 491
under certain public assistance programs; 492
(xii) That the account owner is solely responsible 493
for investment performance, including market gains and losses, and 494
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 21 (ELS\KW)

that IRA accounts and rates of return are not guaranteed by any 495
employer, the state, any state official or the program; 496
(xiii) Additional information about retirement and 497
saving and other information designed to promote financial 498
literacy and capability (which may take the form of links to, or 499
explanations of how to obtain, such information); and 500
(xiv) How to obtain additional information about 501
the program. 502
SECTION 6. Protection from liability for employers. (1) A 503
covered employer or other employer is not and shall not be liable 504
for or bear responsibility for: 505
(a) An employee's decision to participate in or not to 506
participate in the program or a participant's specific elections 507
under the program; 508
(b) Participants' or the State Treasurer's investment 509
decisions; 510
(c) The administration, investment, investment returns 511
or investment performance of the program, including, without 512
limitation, any interest rate or other rate of return on any 513
contribution or account balance, provided they play no role; 514
(d) The program design or the benefits paid to 515
participants; 516
(e) Individuals' awareness of or compliance with the 517
conditions and other provisions of the tax laws that determine 518
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 22 (ELS\KW)

which individuals are eligible to make tax-favored contributions 519
to IRAs, in what amount, and in what time frame and manner; or 520
(f) Any loss, failure to realize any gain, or any other 521
adverse consequences, including, without limitation, any adverse 522
tax consequences or loss of favorable tax treatment, public 523
assistance or other benefits, incurred by any person as a result 524
of participating in the program. 525
(2) No covered employer or other employer shall be, or shall 526
be considered to be, a fiduciary in relation to the program or 527
trust or any other arrangement under the program. 528
SECTION 7. Protection from liability for the state. (1) 529
The state, any state official, commission or agency, any member, 530
officer or employee thereof, and the program: 531
(a) Have no responsibility for compliance by 532
individuals with the conditions and other provisions of the 533
Internal Revenue Code that determine which individuals are 534
eligible to make tax-favored contributions to IRAs, in what 535
amount, and in what time frame and manner; 536
(b) Have no duty, responsibility, or liability to any 537
party for the payment of any benefits under the program, 538
regardless of whether sufficient funds are available under the 539
program to pay such benefits; 540
(c) Do not and shall not guarantee any interest rate or 541
other rate of return on or investment performance of any 542
contribution or account balance; and 543
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 23 (ELS\KW)

(d) Are not and shall not be liable or responsible for 544
any loss, deficiency, failure to realize any gain, or any other 545
adverse consequences, including, without limitation, any adverse 546
tax consequences or loss of favorable tax treatment, public 547
assistance or other benefits, incurred by any person as a result 548
of participating in the program. 549
(2) The debts, contracts and obligations of the program are 550
not the debts, contracts and obligations of the state, and neither 551
the faith and credit nor the taxing power of the state is pledged 552
directly or indirectly to the payment of the debts, contracts and 553
obligations of the program. 554
SECTION 8. Confidentiality of participant and account 555
information. Individual account information relating to accounts 556
under the program and relating to individual participants 557
(including, but not limited to, names, addresses, telephone 558
numbers, email addresses, personal identification information, 559
investments, contributions and earnings) is confidential and must 560
be maintained as confidential: 561
(a) Except to the extent necessary to administer the 562
program in a manner consistent with this act, the tax laws of this 563
state, and the Internal Revenue Code; or 564
(b) Unless the individual who provides the information 565
or is the subject of the information expressly agrees in writing 566
to the disclosure of the information. 567
SECTION 9. Intergovernmental collaboration and cooperation. 568
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 24 (ELS\KW)

The State Treasurer may enter into an intergovernmental agreement 569
or memorandum of understanding with the state and any agency of 570
the state to receive outreach, technical assistance, enforcement 571
and compliance services, collection or dissemination of 572
information pertinent to the program (subject to such obligations 573
of confidentiality as may be agreed or required by law), or other 574
services or assistance. The state and any agencies of the state 575
that enter into such agreements or memoranda of understanding 576
shall collaborate to provide the outreach, assistance, information 577
and compliance or other services or assistance to the State 578
Treasurer. The memoranda of understanding may cover the sharing 579
of costs incurred in gathering and disseminating information and 580
the reimbursement of costs for any enforcement activities or 581
assistance. 582
SECTION 10. Funding of program. (1) The Mississippi Work 583
and Save Administrative Fund is created as a special fund in the 584
State Treasury for the sole purpose of paying the administrative 585
costs and expenses of the program. Monies in the fund shall be 586
expended by the State Treasurer, upon appropriation of the 587
Legislature, for the purposes authorized in this act. The fund 588
shall consist of: 589
(a) Monies appropriated to or transferred into the fund 590
by the Legislature; 591
(b) Monies transferred to the fund from the federal 592
government, other state agencies, or local governments; 593
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 25 (ELS\KW)

(c) Monies from the payment of application, account, 594
administrative, or other fees and the payment of other monies due 595
the State Treasurer; 596
(d) Any gifts, donations, or grants made to the state 597
for deposit in the fund; 598
(e) Monies collected for the fund from contributions 599
to, or investment returns or assets of, the program or other 600
monies collected by or for the program or pursuant to arrangements 601
established under the program to the extent permitted under 602
federal and state law; and 603
(f) Earnings on monies in the fund. 604
(2) The State Treasurer shall accept any grants, gifts, 605
appropriations or other monies from the state, any unit of 606
federal, state or local government, or any other person, firm, 607
partnership, corporation or other entity solely for deposit into 608
the fund, whether for investment or administrative expenses. 609
(3) Unexpended amounts remaining in the fund at the end of a 610
fiscal year shall not lapse into the State General Fund, and any 611
interest earned or investment earnings on amounts in the fund 612
shall be deposited into such fund. 613
(4) To enable or facilitate the start-up and continuing 614
operation, maintenance, administration and management of the 615
program until the program accumulates sufficient balances and can 616
generate sufficient funding through fees assessed on program 617
accounts for the program to become financially self-sustaining: 618
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 26 (ELS\KW)

(a) The State Treasurer may borrow from the state, any 619
unit of federal, state or local government, or any other person, 620
firm, partnership, corporation or other entity working capital 621
funds and other funds as may be necessary for this purpose, 622
provided that such funds are borrowed in the name of the program 623
only and that any such borrowings shall be payable solely from the 624
revenues of the program; and 625
(b) The State Treasurer may enter into long-term 626
procurement contracts with one or more financial providers that 627
provide a fee structure that would assist the program in avoiding 628
or minimizing the need to borrow or to rely upon general assets of 629
the state. 630
(5) The state may pay administrative costs associated with 631
the creation, maintenance, operation and management of the program 632
and trust until sufficient assets are available in the fund for 633
that purpose. Thereafter, all administrative costs of the fund, 634
including any repayment of start-up funds provided by the state, 635
shall be repaid only out of monies on deposit in the fund. 636
However, private funds or federal funding received in order to 637
implement the program until the fund is self-sustaining shall not 638
be repaid unless those funds were offered contingent upon the 639
promise of such repayment. 640
(6) The State Treasurer may use the monies in the fund 641
solely to pay the administrative costs and expenses of the program 642
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 27 (ELS\KW)

and the administrative costs and expenses the State Treasurer 643
incurs in the performance of his or her duties under this act. 644
SECTION 11. Audits and annual reports. (1) The State 645
Treasurer shall cause an accurate account of all of the program's, 646
trust's and State Treasurer's activities, operations, receipts and 647
expenditures to be maintained. Each year, a full audit of the 648
books and accounts of the State Treasurer pertaining to those 649
activities, operations, receipts and expenditures, personnel, 650
services or facilities shall be conducted by a certified public 651
accountant and shall include, but not be limited to, direct and 652
indirect costs attributable to the use of outside consultants, 653
independent contractors, and any other persons who are not state 654
employees for the administration of the program. For the purposes 655
of the audit, the auditors shall have access to the properties and 656
records of the program and may prescribe methods of accounting and 657
the rendering of periodic reports in relation to projects 658
undertaken by the program. 659
(2) By August 1 of each year, the State Treasurer shall 660
submit to the Governor, the State Treasurer and the appropriate 661
committees of the Senate and House an audited financial report, 662
prepared in accordance with generally accepted accounting 663
principles, detailing the activities, operations, receipts and 664
expenditures of the program during the preceding calendar year. 665
The report shall also include projected activities of the program 666
for the current calendar year. 667
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 28 (ELS\KW)

(3) The State Treasurer shall prepare an annual report on 668
the operation of the program to be available to all citizens and 669
provided to appropriate state officials. 670
SECTION 12. Applicability dates. (1) The State Treasurer 671
shall establish the program so that individuals can begin 672
contributing under the program not later than August 1, 2028. 673
(2) The State Treasurer may phase in the program so that the 674
ability to contribute first applies on different dates for 675
different classes of individuals, including employees of employers 676
of different sizes or types and individuals who are not employees 677
(self-employed, independent contractors, etc.). However, any such 678
staged or phased-in implementation schedule must be substantially 679
completed not later than twenty-four (24) months after the 680
effective date of this act. 681
(3) The State Treasurer shall not implement the program if 682
and to the extent that he or she determines that the program is 683
preempted by ERISA. Accordingly, the State Treasurer may 684
implement the program in a severable fashion if the State 685
Treasurer determines: 686
(a) That a portion or aspect of the program is 687
preempted by ERISA, then the State Treasurer shall not implement 688
that portion or aspect of the program but shall proceed to 689
implement the remainder of the program to the extent practicable; 690
or 691
H. B. No. 631 *HR26/R1169* ~ OFFICIAL ~
26/HR26/R1169
PAGE 29 (ELS\KW)
ST: Mississippi Work and Save Program; create.
(b) That some but not all of the payroll deduction IRA 692
arrangements or other arrangements under the program are or would 693
be employee benefit plans under ERISA, then the State Treasurer 694
shall proceed to implement the program with respect to the other 695
arrangements under the program to the extent practicable. 696
SECTION 13. This act shall take effect and be in force from 697
and after July 1, 2026. 698