Indiana would automatically enroll eligible workers in retirement savings accounts

The program would automatically enroll eligible workers in individual retirement accounts through payroll deductions. Workers must live in Indiana, be at least 18, have worked for the employer for at least 90 days, and earn wages taxed by Indiana. Their employer must meet the program's size, business history, and retirement plan rules. The default contribution would be 5% of wages. Workers could opt out or choose another rate. Workers would become eligible to participate after December 31, 2027.

Covered employers would withhold workers' contributions and send them to the program. The rules cover businesses that had at least five employees last year, have operated for at least one year, and offered no qualifying retirement plan in the previous two calendar years. Employers that offer a qualifying retirement plan could seek an exemption. Employers that fail to comply could face fines of up to $5,000 in a calendar year after receiving notice. Employers would have 14 days to send withheld contributions. Fines could begin only after the later of one year from the program's start or one year from the employer's scheduled entry, and at least three months after notice.

The board would hire outside firms to invest money and administer the program. The fee limit would apply to total yearly program fees, measured against the total value of program assets. The board could contract with no more than three firms. The state would not guarantee account returns. The 1% fee limit would apply during the program's first three years. A flat annual fee rate based on a study would begin in year four.