Mississippi Work and Save Program; create.

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Michel, Simmons (13th)

SENATE BILL NO. 2885

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 VOLUNTARY 4
CHOICE TO CONTRIBUTE TO AN INDIVIDUAL RETIREMENT ACCOUNT (IRA) 5
THROUGH A PAYROLL DEDUCTION; TO PROVIDE THE POWERS, AUTHORITY AND 6
DUTIES OF THE STATE TREASURER; TO PRESCRIBE THE REQUIREMENTS FOR 7
THE PROGRAM; TO PROVIDE THAT THE IRA TO WHICH CONTRIBUTIONS ARE 8
MADE WILL BE A ROTH IRA AND THE STANDARD PACKAGE WILL BE A ROTH 9
IRA WITH A TARGET DATE FUND INVESTMENT AND A SPECIFIED 10
CONTRIBUTION PERCENTAGE; TO PROVIDE CERTAIN PROTECTION FROM 11
LIABILITY FOR EMPLOYERS IN THE PROGRAM AND FOR THE STATE; TO 12
PROVIDE FOR THE CONFIDENTIALITY OF PARTICIPANT AND ACCOUNT 13
INFORMATION; TO CREATE THE MISSISSIPPI WORK AND SAVE 14
ADMINISTRATIVE FUND AS A SPECIAL FUND IN THE STATE TREASURY; TO 15
PROVIDE THAT MONIES IN THE FUND SHALL BE EXPENDED UPON 16
APPROPRIATION OF THE LEGISLATURE, FOR THE PURPOSES AUTHORIZED IN 17
THIS ACT; AND FOR RELATED PURPOSES. 18
WHEREAS, the Legislature finds that too many Mississippi 19
citizens have no or inadequate savings for retirement, and many 20
Mississippi working families, including employees, independent 21
contractors, and the self-employed, have no access to an 22
employer-sponsored retirement plan or program or any other easy 23
way to save at work; and 24
WHEREAS, it is the policy of the state to assist the 25
Mississippi private-sector workforce, including in particular 26
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moderate- and lower-income working households, to voluntarily save 27
for retirement, including by facilitating saving in individual 28
retirement accounts (IRAs) as well as by encouraging employers to 29
adopt retirement savings and other retirement plans for employees 30
in the state; and 31
WHEREAS, more adequate, portable, low-cost, and 32
consumer-protective retirement saving by Mississippi households 33
will enhance their retirement security and ultimately reduce the 34
pressure on state public assistance programs for retirees and 35
other elderly citizens and the potential burden on Mississippi 36
taxpayers to finance such programs; and 37
WHEREAS, the Legislature intends to establish the Mississippi 38
Work and Save Program that will use the services of competent and 39
qualified private-sector entities to administer the program and 40
manage the funds on behalf of the program participants and that 41
shall, to the extent necessary or desirable, endeavor to 42
collaborate, cooperate, coordinate, contract, and combine 43
resources, investments, and administrative functions with other 44
entities, including retirement savings programs of other states 45
that are compatible with the program, through contracts, 46
agreements, memoranda of understanding, arrangements, 47
partnerships, or similar arrangements as appropriate to achieve 48
economies of scale and other efficiencies designed to minimize 49
costs for the program and its participants; and 50
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WHEREAS, the Mississippi Affordable College Savings Program 51
(MACS) has demonstrated the feasibility of a public-private 52
partnership that outsources investment and administration to 53
assist private citizens of the state to save on a voluntary and 54
cost-efficient basis; NOW, THEREFORE, 55
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 56
SECTION 1. Title. This act shall be known and may be cited 57
as the Mississippi Work and Save Program. 58
SECTION 2. Definitions. For purposes of this act, the 59
following terms shall be defined as provided in this section: 60
(a) "Covered employee" means an individual who is 61
employed by a covered employer, who has wages or other 62
compensation that is allocable to the state, and who is at least 63
eighteen (18) years of age, and who voluntarily participates in 64
the program. The term "covered employee" does not include: 65
(i) Any employee covered under the federal Railway 66
Labor Act (45 USC Section 151). 67
(ii) Any employee on whose behalf an employer 68
makes contributions to a Taft-Hartley multiemployer pension trust 69
fund. 70
(iii) Any individual who is an employee of the 71
federal government, the state or any other state, any county or 72
municipality, or any of the state's, any other state's, or the 73
federal government's units or instrumentalities. 74
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(b) "Covered employer" means a person or entity engaged 75
in a business, industry, profession, trade, or other enterprise in 76
the state, whether for profit or not for profit, excluding the 77
federal government, the state, any county, any municipal 78
corporation, or any of the state's or the federal government's 79
units or instrumentalities, and that voluntarily participates in 80
the program. The term "covered employer" does not include an 81
employer that maintains a specified tax-favored retirement plan 82
for its employees or has done so effective in form and operation 83
at any time within the current or two (2) preceding calendar 84
years. If an employer does not maintain a specified tax-favored 85
retirement plan for a portion of a calendar year ending on or 86
after the effective date of this act and adopts such a plan 87
effective for the remainder of that calendar year, the employer is 88
exempt from "covered employer" status for that remainder of the 89
year. 90
(c) "ERISA" means the Employee Retirement Income 91
Security Act of 1974, as amended (29 USC Section 1001 et seq.). 92
(d) "Internal Revenue Code" means the Internal Revenue 93
Code of 1986, as amended (Title 26 of the United States Code). 94
(e) "IRA" means a traditional or Roth individual 95
retirement account or individual retirement annuity under Section 96
408(a), 408(b), or 408A of the Internal Revenue Code. 97
(f) "Mississippi Work and Save Administrative Fund", 98
"administrative fund" or "fund" is the fund established in Section 99
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10 of this act that is established for the sole purpose of paying 100
the administrative costs and expenses of the program. 101
(g) "Mississippi Work and Save Program" or "program" 102
means the retirement savings program established by this act. 103
(h) "Participant" means an individual who is 104
contributing to an IRA under the program or has an IRA account 105
balance under the program. 106
(i) "Participating employer" means a covered employer 107
that provides for covered employees a payroll deduction IRA 108
provided for by this act. 109
(j) "Payroll deduction IRA arrangement" or "payroll 110
deduction IRA" means an arrangement by which an employer allows 111
employees to contribute to an IRA by means of payroll deduction. 112
(k) "Roth IRA" means a Roth individual retirement 113
account or individual retirement annuity under Section 408A of the 114
Internal Revenue Code. 115
(l) "Specified tax-favored retirement plan" means a 116
retirement plan that is tax-qualified under or is described in and 117
satisfies the requirements of Section 401(a), 401(k), 403(a), 118
403(b), 408(k)(Simplified Employee Pension), or 408(p)(SIMPLE-IRA) 119
of the Internal Revenue Code. 120
(m) "Total fees and expenses" means all fees, costs, 121
and expenses, including, but not limited to, administrative 122
expenses, investment expenses, investment advice expenses, 123
accounting costs, actuarial costs, legal costs, marketing 124
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expenses, education expenses, trading costs, insurance 125
annuitization costs, and other miscellaneous costs. 126
(n) "Traditional IRA" means a traditional individual 127
retirement account or traditional individual retirement annuity 128
under Section 408(a) or (b) of the Internal Revenue Code. 129
(o) "Trust" means the trust in which the assets of the 130
program are held. Where applicable, except as may be otherwise 131
specified, references throughout this act to the program generally 132
are intended to refer also to the trust (including the assets, 133
facilities, costs and expenses, receipts, expenditures, 134
activities, operations, administration, or management). 135
SECTION 3. Powers, authority, and duties of the State 136
Treasurer. (1) The State Treasurer shall design, develop, and 137
implement the program, and, to that end, may conduct market, 138
legal, and feasibility analyses. 139
(2) The State Treasurer shall have the powers, authority, 140
and duties to: 141
(a) Establish, implement, and maintain the program; 142
(b) Cause the program, trust, and arrangements and 143
accounts established under the program to be designed, 144
established, and operated: 145
(i) In accordance with best practices for 146
retirement saving vehicles; 147
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(ii) To encourage participation, saving, sound 148
investment practices, and appropriate selection of investment 149
options, including any default investments; 150
(iii) To maximize simplicity and ease of 151
administration for covered employers; 152
(iv) To minimize costs, including by collective 153
investment and other measures to achieve economies of scale and 154
other efficiencies in program design and administration; 155
(v) To promote portability of benefits; and 156
(vi) To avoid preemption of the program by federal 157
law; 158
(c) Arrange for collective, common, and pooled 159
investment of assets of the program and trust, including 160
investments in conjunction with other funds with which these 161
assets are permitted by law to be collectively invested, with a 162
view to achieving economies of scale and other efficiencies 163
designed to minimize costs for the program and its participants; 164
(d) Develop and disseminate educational information 165
designed to educate participants and citizens about the benefits 166
of planning and saving for retirement and information to help them 167
decide the level of participation and savings strategies that may 168
be appropriate for them, including information in furtherance of 169
financial capability and financial literacy; 170
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(e) If necessary, determine the eligibility of an 171
employer, employee, or other individual to participate in the 172
program; 173
(f) Adopt rules and regulations it deems necessary or 174
advisable for the implementation of this act and the 175
administration and operation of the program consistent with the 176
Internal Revenue Code and regulations thereunder, including to 177
ensure that the program and arrangements established under the 178
program satisfy all criteria for favorable federal tax treatment 179
and complies, to the extent necessary, with any other applicable 180
federal or state law; 181
(g) Arrange for and facilitate compliance by the 182
program or arrangements established under the program with all 183
applicable requirements for the program under the Internal Revenue 184
Code, including requirements for favorable tax treatment of the 185
IRAs, and under any other applicable federal or state law and 186
accounting requirements, including using its best efforts to 187
implement procedures minimizing the risk that covered employees 188
will contribute more to an IRA than the amount they are eligible 189
for under the Internal Revenue Code to contribute to the IRA on a 190
tax-favored basis, and otherwise providing or arranging for 191
assistance to covered employers and covered employees in complying 192
with applicable law and tax-related requirements in a 193
cost-effective manner. The State Treasurer may establish any 194
processes that he reasonably deems to be necessary or advisable to 195
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verify whether an employer is a covered employer (including 196
reference to online data and possible use of questions in employer 197
state tax filings); 198
(h) Employ or retain a program administrator, executive 199
director, staff, trustee, recordkeeper, investment managers, 200
investment advisors, other administrative, professional, expert 201
advisors and service providers, and determine their duties and 202
compensation. The State Treasurer may authorize the executive 203
director and other officials to oversee requests for proposals or 204
other public competitions and enter into contracts. The State 205
Treasurer may authorize the executive director to enter into 206
contracts, as described in paragraph (n) of this subsection (2), 207
on behalf of the State Treasurer or conduct any business necessary 208
for the efficient operation of the program; 209
(i) Establish procedures for the timely and fair 210
resolution of participant and other disputes related to accounts 211
or program operation; 212
(j) Develop and implement an investment policy that 213
defines the program's investment objectives, consistent with the 214
objectives of the program, and that provides for policies and 215
procedures consistent with those investment objectives. The State 216
Treasurer shall designate appropriate default investments that 217
include a mix of asset classes, such as target date and balanced 218
funds. The State Treasurer shall seek to minimize participant 219
fees and expenses of investment and administration. The State 220
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Treasurer shall strive to design and implement investment options 221
available to holders of accounts established as part of the 222
program and other program features that are intended to achieve 223
maximum possible income replacement balanced with an appropriate 224
level of risk in an IRA-based environment consistent with the 225
investment objectives under the policy. The investment options 226
may encompass a range of risk and return opportunities and allow 227
for a rate of return commensurate with an appropriate level of 228
risk in view of the investment objectives under the policy. The 229
menu of investment options shall be determined taking into account 230
the nature and objectives of the program, the desirability (based 231
on behavioral research findings) of limiting investment choices 232
under the program to a reasonable number, and the extensive 233
investment choices available to participants if they roll over to 234
an IRA outside the program. In accordance with paragraph (h) of 235
this subsection (2), the State Treasurer, to the extent he deems 236
it necessary or advisable, in his discretion, in carrying out his 237
responsibilities and exercising his powers under this and other 238
paragraphs and provisions of this act, shall employ or retain 239
appropriate entities or personnel to assist or advise him or to 240
whom to delegate the carrying out of such responsibilities and 241
exercise of such powers; 242
(k) Discharge his duties as a fiduciary with respect to 243
the program solely in the interest of the participants as follows: 244
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(i) For the exclusive purpose of providing 245
benefits to participants and defraying reasonable expenses of 246
administering the program; and 247
(ii) With the care, skill, prudence, and diligence 248
under the circumstances then prevailing that a prudent person 249
acting in a like capacity and familiar with those matters would 250
use in the conduct of an enterprise of a like character and with 251
like aims; 252
(l) Cause expenses incurred to initiate, implement, 253
maintain, and administer the program to be paid from contributions 254
to, or investment returns or assets of, the program or other money 255
collected by or for the program or pursuant to arrangements 256
established under the program to the extent permitted under 257
federal and state law; 258
(m) Collect application, account, or administrative 259
fees and to accept any grants, gifts, legislative appropriation, 260
loans, and other monies from the state, any unit of federal, 261
state, or local government, or any other person, firm, or entity 262
to defray the costs of administering and operating the program; 263
(n) Make and enter into competitively procured 264
contracts, agreements, memoranda of understanding, arrangements, 265
partnerships, or other arrangements, to collaborate and cooperate 266
with, and to retain, employ, and contract with or for any of the 267
following to the extent necessary or desirable, for the effective 268
and efficient design, implementation, and administration of the 269
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program consistent with the purposes set forth in this act and to 270
maximize outreach to covered employers and covered employees: 271
(i) Services of private and public financial 272
institutions, depositories, consultants, actuaries, counsel, 273
auditors, investment advisors, investment administrators, 274
investment management firms, other investment firms, third-party 275
administrators, other professionals and service providers, and 276
state public retirement systems; 277
(ii) Research, technical, financial, 278
administrative, and other services; and 279
(iii) Services of other state agencies to assist 280
the State Treasurer in the exercise of his powers and duties; 281
(o) Make and enter into contracts, agreements, 282
memoranda of understanding, arrangements, partnerships, or other 283
arrangements to collaborate, cooperate, coordinate, contract, or 284
combine resources, investments, or administrative functions with 285
other governmental entities, including states or their agencies or 286
instrumentalities that maintain or are establishing retirement 287
savings programs compatible with the program, including 288
collective, common, or pooled investments with other funds of 289
other states' programs with which the assets of the program and 290
trust are permitted by law to be collectively invested, to the 291
extent necessary or desirable for the effective and efficient 292
design, administration, and implementation of the program 293
consistent with the purposes set forth in this act, including the 294
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purpose of achieving economies of scale and other efficiencies 295
designed to minimize costs for the program and its participants 296
and the provisions of Section 4(j) and (l) of this act. 297
(p) Develop and implement an outreach plan to gain 298
input and disseminate information regarding the program and 299
retirement savings in general, including timely information to 300
covered employers regarding the program and how it applies to 301
them, with special emphasis on their ability at any time to 302
sponsor a specified tax-favored retirement plan that would exempt 303
them from any responsibilities under the program; 304
(q) Cause monies to be held and invested and reinvested 305
under the program; 306
(r) Ensure that all contributions to IRAs under the 307
program may be used only to: 308
(i) Pay benefits to participants under the 309
program; 310
(ii) Pay the cost of administering the program; 311
and 312
(iii) Make investments for the benefit of the 313
program, and that no assets of the program or trust are 314
transferred to the State General Fund or to any other fund of the 315
state or are otherwise encumbered or used for any purpose other 316
than those specified in this subsection (2); 317
(s) Make provision for the payment of costs of 318
administration and operation of the program and trust; 319
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(t) Consider whether or not procedures should be 320
promulgated to allow employers that are not covered employers 321
because they are exempt from covered employer status to 322
voluntarily participate in the program by enrolling their 323
employees in payroll deduction IRAs, taking into account, among 324
other considerations, the potential legal consequences and the 325
degree of employer demand to participate or facilitate 326
participation by employees; 327
(u) Evaluate the need for, and procure if and as 328
needed, insurance against any and all loss in connection with the 329
property, assets, or activities of the program, and evaluate the 330
need for, and procure if and as deemed necessary, pooled private 331
insurance; 332
(v) Indemnify, including procurement of insurance if 333
and as needed for this purpose, the State Treasurer from personal 334
loss or liability resulting from his action or inaction; 335
(w) Collaborate with, and evaluate the role of, 336
financial advisors or other financial professionals, including in 337
assisting and providing guidance for covered employees; and 338
(x) Carry out its powers and duties under the program 339
pursuant to this act and exercise any and all other powers as are 340
appropriate for the effectuation of the purposes, objectives, and 341
provisions of this act pertaining to the program. 342
(3) The State Treasurer and his staff shall not: 343
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(a) Directly or indirectly have any interest in the 344
making of any investment under the program or in gains or profits 345
accruing from any such investment; 346
(b) Borrow any program-related funds or deposits, or 347
use any such funds or deposits in any manner, for himself or 348
herself or as an agent or partner of others; or 349
(c) Become an endorser, surety, or obligor on 350
investments made under the program. 351
SECTION 4. Requirements for the Mississippi Work and Save 352
program. The program developed and established under this act 353
must: 354
(a) Allow eligible individuals in the state to 355
voluntarily choose whether or not to contribute to an IRA under 356
the program, including allowing covered employees in the state the 357
choice to contribute to an IRA through payroll deduction under the 358
program; 359
(b) Allow each covered employer to voluntarily offer 360
its employees the voluntary choice whether or not to contribute to 361
a payroll deduction IRA by permitting automatic enrollment where 362
employees may opt out of participation; 363
(c) Provide that the IRA to which contributions are 364
made will be a Roth IRA, except that the State Treasurer shall 365
have the authority at any time, to add an option for all 366
participants to affirmatively elect to contribute to a traditional 367
IRA as an alternative to the Roth IRA; 368
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(d) Provide that the standard package shall be a Roth 369
IRA with a target date fund investment, and that the covered 370
employee can choose to stop participation altogether, can use a 371
traditional IRA and a different investment from among the options 372
available, and can contribute at a higher or lower contribution 373
rate, subject to the IRA contribution dollar limits applicable 374
under the Internal Revenue Code; 375
(e) Provide on a uniform basis, if and when the State 376
Treasurer so determines, in its discretion, for annual increases 377
of each participant's contribution rate, by not more than one 378
percent (1%) of salary or wages per year up to a maximum of eight 379
percent (8%). Any such increases shall apply to participants, as 380
determined by the State Treasurer, by default or only if initiated 381
by affirmative participant election (including as part of the 382
standard package), in either case subject to the IRA contribution 383
limits applicable under the Internal Revenue 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
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(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 395
extent desirable to facilitate and enhance the effectiveness and 396
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
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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
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 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
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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
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 455
from the program to covered employees, participants, other 456
individuals eligible to participate in the program, covered 457
employers, and other interested parties. These disclosures shall 458
include, but 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
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(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
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 intended 487
not to be employer-sponsored retirement plans and that the program 488
is not an employer-sponsored retirement plan; 489
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(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
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
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(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
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
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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
(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 551
neither the faith and credit nor the taxing power of the state is 552
pledged directly or indirectly to the payment of the debts, 553
contracts, and 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
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(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
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, 577
information, and compliance or other services or assistance to the 578
State Treasurer. The memoranda of understanding may cover the 579
sharing of costs incurred in gathering and disseminating 580
information and the reimbursement of costs for any enforcement 581
activities or 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. Monies in the Administrative Fund shall be 585
expended by the State Treasurer, upon appropriation of the 586
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Legislature, for the purposes authorized in this act. The 587
Administrative Fund shall consist of: 588
(a) Monies appropriated to or transferred into the 589
Administrative Fund by the Legislature; 590
(b) Monies transferred to the Administrative Fund from 591
the federal government, other state agencies, or local 592
governments; 593
(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 Administrative Fund; 598
(e) Monies collected for the Administrative Fund from 599
contributions to, or investment returns or assets of, the program 600
or other monies collected by or for the program or pursuant to 601
arrangements established under the program to the extent permitted 602
under federal and state law; and 603
(f) Earnings on monies in the Administrative 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 Administrative Fund, whether for investment or administrative 609
expenses. 610
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(3) Unexpended amounts remaining in the Administrative Fund 611
at the end of a fiscal year shall not lapse into the State General 612
Fund, and any interest earned or investment earnings on amounts in 613
the fund shall be deposited into such fund. 614
(4) To enable or facilitate the start-up and continuing 615
operation, maintenance, administration, and management of the 616
program until the program accumulates sufficient balances and can 617
generate sufficient funding through fees assessed on program 618
accounts for the program to become financially self-sustaining: 619
(a) The State Treasurer may borrow from the state, any 620
unit of federal, state, or local government, or any other person, 621
firm, partnership, corporation, or other entity working capital 622
funds and other funds as may be necessary for this purpose, 623
provided that such funds are borrowed in the name of the program 624
only and that any such borrowings shall be payable solely from the 625
revenues of the program; and 626
(b) The State Treasurer may enter into long-term 627
procurement contracts with one or more financial providers that 628
provide a fee structure that would assist the program in avoiding 629
or minimizing the need to borrow or to rely upon general assets of 630
the state. 631
(5) The state may pay administrative costs associated with 632
the creation, maintenance, operation, and management of the 633
program and trust until sufficient assets are available in the 634
Administrative Fund for that purpose. Thereafter, all 635
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administrative costs of the Administrative Fund, including any 636
repayment of start-up funds provided by the state, shall be repaid 637
only out of monies on deposit in the fund. However, private funds 638
or federal funding received in order to implement the program 639
until the Administrative Fund is self-sustaining shall not be 640
repaid unless those funds were offered contingent upon the promise 641
of such repayment. 642
(6) The State Treasurer may use the monies in the 643
Administrative Fund solely to pay the administrative costs and 644
expenses of the program and the administrative costs and expenses 645
the State Treasurer incurs in the performance of his duties under 646
this act. 647
SECTION 11. Audits and annual reports. (1) The State 648
Treasurer shall cause an accurate account of all of the program's, 649
trust's, and State Treasurer's activities, operations, receipts, 650
and expenditures to be maintained. Each year, a full audit of the 651
books and accounts of the State Treasurer pertaining to those 652
activities, operations, receipts and expenditures, personnel, 653
services, or facilities shall be conducted by a certified public 654
accountant and shall include, but not be limited to, direct and 655
indirect costs attributable to the use of outside consultants, 656
independent contractors, and any other persons who are not state 657
employees for the administration of the program. For the purposes 658
of the audit, the auditors shall have access to the properties and 659
records of the program and may prescribe methods of accounting and 660
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the rendering of periodic reports in relation to projects 661
undertaken by the program. 662
(2) By August 1 of each year, the State Treasurer shall 663
submit to the Governor, the State Treasurer, and the appropriate 664
committees of the Senate and House an audited financial report, 665
prepared in accordance with generally accepted accounting 666
principles, detailing the activities, operations, receipts, and 667
expenditures of the program during the preceding calendar year. 668
The report shall also include projected activities of the program 669
for the current calendar year. 670
(3) The State Treasurer shall prepare an annual report on 671
the operation of the program to be available to all citizens and 672
provided to appropriate state officials. 673
SECTION 12. Applicability dates. (1) The State Treasurer 674
shall establish the program so that individuals can begin 675
contributing under the program not later than the first of the 676
month following the second anniversary of the effective date of 677
this act. 678
(2) The State Treasurer may, in his discretion, phase in the 679
program so that the ability to contribute first applies on 680
different dates for different classes of individuals, including 681
employees of employers of different sizes or types and individuals 682
who are not employees (self-employed, independent contractors, 683
etc.). However, any such staged or phased-in implementation 684
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ST: Mississippi Work and Save Program; create.
schedule must be substantially completed not later than 685
twenty-four (24) months after the effective date of this act. 686
(3) The State Treasurer shall not implement the program if 687
and to the extent that it determines that the program is preempted 688
by ERISA. Accordingly, if and as needed, the State Treasurer 689
shall implement the program in a severable fashion to the extent 690
practicable if and to the extent that the State Treasurer 691
determines: 692
(a) That a portion or aspect of the program is 693
preempted by ERISA, the State Treasurer shall not implement that 694
portion or aspect of the program but shall proceed to implement 695
the remainder of the program to the extent practicable; or 696
(b) That some but not all of the payroll deduction IRA 697
arrangements or other arrangements under the program are or would 698
be employee benefit plans under ERISA, the State Treasurer shall 699
proceed to implement the program with respect to the other 700
arrangements under the program to the extent practicable. 701
SECTION 13. This act shall take effect and be in force from 702
and after July 1, 2026. 703