SMALL BUSINESS RETIREMENT PROGRAM.

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View NCGA Bill Details2017-2018 Session
House Bill 633 (Public) Filed Thursday, April 6, 2017
AN ACT TO CREATE THE VOLUNTARY SMALL BUSINESS RETIREMENT ACCOUNTS PROGRAM.
Intro. by Hardister, Ross, Goodman, R. Moore.

Status: Ref to the Com on Pensions and Retirement, if favorable, Banking (House Action) (Apr 10 2017)
H 633

Bill Summaries:

  • Summary date: Apr 7 2017 - View Summary

    Enacts new Part 2L, North Carolina Volunteer Small Business Retirement Accounts Program (Program) in Article 10 of GS Chapter 143B. Requires that the Article be liberally construed so as to provide a tax-qualified retirement program for participating employers and participating employees. Defines participating employee as an individual who is employed in this State by a small nongovernmental employer, has chosen to have contributions made to an account in the Program, and has at least $1 in an account in the Program. Defines participating employer as small nongovernmental employer in the State that elects to participate in the Program.

    Establishes the Program as part of the Department of Commerce and requires the six member North Carolina Voluntary Employee Retirement Accounts Board (Board) to create the Program to provide a cost‑effective group retirement option for small nongovernmental employers and employees of small nongovernmental employers. Sets out provisions governing the Board, including the appointment of members (who serve staggered four-year terms) and the designation of a chair. Requires that the Board develop standards and requirements for the Program's operations that are consistent with Article 10 and applicable federal law, including five specified procedures.

    Requires the Board to contract with providers to provide specified services, including options for accounts and investment products under the program, and  management of money being deposited in an investment product.

    Allows the Board to receive grants, gifts, or other money to cover the cost of administering the Program, and requires the Board to develop incentives for Program participation.

    Requires the Department of Commerce to include a list of participating employers on the Deapartment's website.

    Requires the Board to report annually, beginning on June 30, 2018, on specified Program information to  the Governor and the Joint Legislative Commission on Governmental Operations.

    Specifies that information held by the Board or any entity contracting with the Board that is specific to a participating employee, as delineated in the act, is confidential and not a public record. 

    Requires the Board to contract with a provider to develop educational information for the public.

    Allows a  small nongovernmental employer in this State to participate in the Program if, as of January 1, 2018, the small nongovernmental employer does not offer an active retirement program for its employees before electing to participate in the Program. Requires participating employers to comply with all Program requirements, and allows a participating employer to elect to discontinue participation in accordance with Program requirements. Specifies that no small nongovernmental employer is required to participate.

    Sets out employee annual notification requirements for small nongovernmental employers participating in the Program. Requires that the Board establish the information required to be provided in the annual notifications, and at least one method a small nongovernmental employer may use to comply with the participation requirements.

    Effective October 1, 2017.