Nevada has become the latest state to provide retirement plan coverage for private-sector employees whose employers do not.
The Nevada Senate passed legislation that would create a state program, SB305, on May 26; the Nevada Assembly followed suit on June 4. The bill then went to Gov. Joe Lombardo (R), who signed it into law on June 13.
ARA Support
The American Retirement Association (ARA) on April 12 had sent a letter in support of the legislation to Nevada Senate Government Affairs Committee Chair Sen. Edgar Flores (D-Clark County). Said the ARA:
The ARA believes that Senate Bill No. 305 strikes the proper balance to close the retirement plan coverage gap in the private sector workforce to the greatest extent possible while imposing the minimum possible burden on Nevada’s employers. Senate Bill No. 305 requires all private sector employers with an electronic payroll system in the State of Nevada to offer a retirement plan to their employees. Senate Bill No. 305 ensures that any type of retirement plan, such as a 401(k) plan, satisfies the requirement. Further, Senate Bill No. 305 creates a state-facilitated IRA-based retirement program designed to be exempt from the Employee Retirement Income Security Act (ERISA). This approach will not force the state to compete with the many existing retirement plan products in the marketplace.
And Now
SB305 establishes the Nevada Employee Savings Trust, a state-run retirement savings program for private-sector employees. It also creates a Board of Trustees of the Nevada Employee Savings Trust and the Nevada Employee Savings Trust Administrative Fund. The money in the fund will be used only to pay the administrative costs and expenses of the board and the program.
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