HF 2303 (LSB 5069HH (2) 83)

HOUSE FILE 2303

BY  SWAIM

A BILL FOR

An Act concerning automatic enrollment in a qualified retirement plan offered by an employer and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  91A.15  Qualified retirement plans

—— automatic enrollment.
   1.  For purposes of this section, “eligible retirement plan” means a retirement plan qualified under sections 401, 403, 408, and 457 of the Internal Revenue Code.
   2.  An employer offering an eligible retirement plan to employees shall automatically enroll each employee of the employer in the eligible retirement plan unless the employee affirmatively elects to opt out of enrollment in the plan.
EXPLANATION
   The bill provides that an employer offering an eligible retirement plan to employees shall automatically enroll each employee of the employer in the plan unless the employee affirmatively elects to opt out of enrollment in the plan. The bill defines an eligible retirement plan as a retirement plan that is qualified under sections 401, 403, 408, and 457 of the Internal Revenue Code. An employer who violates this new Code section shall be subject to civil penalties as provided in Code section 91A.12.