Legislative Summary:

House Bill 5591 was introduced by the Labor & Public Employees Committee on March 3rd, 2016 and approved by the House on April 27th 2016. The Senate ratified the amended bill on May 3rd, 2016 and Public Act 16-29 was signed into law on May 27th, 2016.

Program Description:

Automatic enrollment to a state-sponsored Roth or traditional IRA program; default 3% contribution rate and auto-escalation yet to be determined.

Affected Employers:

Employers with more than five (5+) W2 employees above the age of 19, who have been employed for at least 120 days, and paid more than $5,000 in a calendar year must either enroll in the state’s IRA program, or they must opt out and have another eligible program such as an employer sponsored 401(k) plan.

General Requirement:

Automatic enroll employees at 3% deferral of the enrollee’s wages.

Launch Status:

April 1, 2022

Full Implementation:

March 30, 2023

Compliance Deadline:

October 31, 2022 Employers with 25+ employees
March 30, 2023 Employers with 5+ employees

Non-Compliance Penalties:

June 28, 2023 5 – 24 Employees , $500
January 10, 2023 25 – 99 Employees, $1,000
January 10, 2023 100+ Employees, $1,500

Employer Costs:


Employee Costs:

$26 annual account fee + 0.26% fee per investment


The program offers a suite of 12 target date funds (TDFs), as the default investment option, and additional investment options – including cash preservation, income, income & growth, balanced funds as well as conservative, moderate or growth portfolios.