Kansas workers could save for retirement through payroll deductions

A board in the state treasurer’s office would establish and run a retirement savings program using individual accounts. The program would serve eligible Kansas employees. Some employers and people who are not employees could participate voluntarily. The board could collect fees and seek gifts or grants to cover program costs. State payment of early administrative costs would depend on an appropriation. The bill gives two different effective-date formulations: July 1, 2027, and after July 1, 2027, and publication in the statute book.

Covered employers would automatically enroll eligible workers and withhold their chosen contributions from wages. A worker must be at least 18, have worked for the employer at least 90 days, earn taxable wages, and live in Kansas. A covered employer generally must have had at least five employees in the prior calendar year, been in business for at least one year, and not offered a qualifying retirement plan in the previous two calendar years. Workers could opt out or choose a rate other than the default 5%. An employer could seek an exemption if it offers a qualifying retirement plan, under rules set by the board. Eligible Kansas workers could participate starting January 1, 2028.