The proposed bill establishes the "Washington Saves" program, an initiative aimed at enhancing retirement security for Washington residents through automatic enrollment in individual retirement savings accounts (IRAs) for employees without access to employer-sponsored plans. Covered employers are required to register with the program, assist employees in opting in or out, and provide necessary information. The bill also creates a governing board responsible for overseeing the program, setting contribution rates, and ensuring compliance with federal regulations. Key provisions include the establishment of an administrative account, default investment options for contributions, and a launch date set for January 1, 2027, with a focus on outreach to marginalized communities.

Additionally, the bill amends existing laws related to the Washington small business retirement marketplace, updating definitions and clarifying the roles of involved entities. It mandates that participating financial services firms offer at least two product options, including a target date fund, while ensuring no administrative fees for employers and limiting annual fees for enrollees. The bill also introduces compliance mechanisms for employers, with the Department of Labor and Industries overseeing education and enforcement. New sections are included to create trust accounts for program funds, and the bill outlines the distribution of earnings from state accounts, ensuring that specific accounts receive their proportionate share based on average daily balances. The act will form a new chapter in Title 19 RCW, with provisions for expiration and effective dates.

Statutes affected:
Original Bill: 43.330.730, 43.330.735