S.F. 185 Section 1. NEW SECTION . 12L.1 Purpose and definitions. 1 1. The general assembly finds that the general welfare and 2 well-being of the state are directly related to the ability 3 of the citizens of the state to save for their retirement 4 years, and that a vital and valid public purpose is served by 5 the creation and implementation of programs which encourage 6 and make possible the attainment of financial security by 7 the greatest number of citizens of the state. According to 8 a study conducted in 2019 by the Iowa insurance division in 9 conjunction with other partners, thirty-nine percent of people 10 in this state are relying on social security for retirement 11 and thirty-seven percent have less than five thousand dollars 12 saved or invested for retirement. In order to make available 13 to the citizens of the state an opportunity to fund future 14 retirement savings needs, it is necessary that a public trust 15 be established in which moneys may be invested for retirement. 16 2. As used in this chapter, unless the context otherwise 17 requires: 18 a. “Administrative fund” means the administrative fund 19 established under section 12L.8. 20 b. “Employer” means a person or entity engaged in a 21 business, industry, profession, trade, or other enterprise in 22 Iowa. 23 c. “Internal Revenue Code” means the same as defined in 24 section 422.3. 25 d. “Iowa retirement savings plan trust” or “trust” means the 26 trust created under section 12L.2. 27 e. “Participant” means an individual that has entered into a 28 participation agreement under this chapter to contribute to an 29 Iowa retirement savings plan. 30 f. “Participation agreement” means an agreement between a 31 participant and the Iowa retirement savings plan trust entered 32 into under this chapter. 33 g. “Program fund” means the program fund established under 34 section 12L.8. 35 -1- LSB 1503XS (6) 91 sc/ns 1/ 8

S.F. 185 Sec. 2. NEW SECTION . 12L.2 Creation of Iowa retirement 1 savings plan trust. 2 An Iowa retirement savings plan trust for persons employed 3 for compensation in this state, as allowed by the Internal 4 Revenue Code, is created for the purpose of helping Iowans save 5 for retirement. The trust shall function according to the 6 provisions of the federal SECURE 2.0 Act of 2022, Pub. L. No. 7 117-328. The treasurer of state is the trustee of the trust, 8 and has all powers necessary to carry out and effectuate the 9 purposes, objectives, and provisions of this chapter pertaining 10 to the trust, including the power to do all of the following: 11 1. Make and enter into contracts necessary for the 12 administration of the trust. 13 2. Enter into agreements with any financial institution, 14 the state, or any federal or other state agency, or other 15 entity as required to implement this chapter. 16 3. Carry out the duties and obligations of the trust 17 pursuant to this chapter. 18 4. Accept any grants, gifts, legislative appropriations, 19 and other moneys from the state, any unit of federal, state, or 20 local government, or any other person, firm, partnership, or 21 corporation which the treasurer of state shall deposit into the 22 administrative fund or the program fund. 23 5. Carry out studies and projections so the treasurer of 24 state may advise participants regarding present and estimated 25 future retirement needs and levels of financial participation 26 in the trust required in order to enable participants to 27 achieve their retirement funding objectives. 28 6. Participate in any federal, state, or local governmental 29 program for the benefit of the trust. 30 7. Procure insurance against any loss in connection with the 31 property, assets, or activities of the trust. 32 8. Enter into agreements with participants and employers. 33 9. Make distributions and refunds to participants pursuant 34 to participation agreements as prescribed by the Internal 35 -2- LSB 1503XS (6) 91 sc/ns 2/ 8

S.F. 185 Revenue Code. 1 10. Invest moneys from the program fund in any investments 2 which are determined by the treasurer of state to be 3 appropriate. 4 11. Engage investment advisors, if necessary, to assist in 5 the investment of trust assets. 6 12. Contract for goods and services and engage personnel 7 as necessary, including consultants, actuaries, managers, 8 legal counsel, and auditors, for the purpose of rendering 9 professional, managerial, and technical assistance and advice 10 to the treasurer of state regarding trust administration and 11 operation. 12 13. Establish, impose, and collect administrative fees 13 and charges in connection with transactions of the trust, and 14 provide for reasonable service charges, including penalties for 15 cancellations and late payments with respect to participation 16 agreements. 17 14. Administer the funds of the trust. 18 15. Adopt rules pursuant to chapter 17A for the 19 administration of the trust. 20 Sec. 3. NEW SECTION . 12L.3 Enrollment and contributions. 21 1. The treasurer of state shall automatically enroll an 22 individual employed for compensation in this state, whose wages 23 are subject to withholding by the state, in the Iowa retirement 24 savings plan trust with a default contribution rate of five 25 percent. A participant’s contribution rate shall be adjusted 26 at the participant’s request. Participants shall be able to 27 maintain an account regardless of place of employment and shall 28 be able to roll over moneys into other retirement accounts. A 29 participant may opt out of the trust at any time. 30 2. Participants shall deposit contributions to the trust 31 directly with the treasurer of state. An individual employed 32 for compensation in this state may contribute to the trust 33 through payroll deductions. An employer need not offer its 34 employees the opportunity to contribute to the trust through 35 -3- LSB 1503XS (6) 91 sc/ns 3/ 8

S.F. 185 payroll deductions if the employer has fewer than five 1 employees or offers a qualified retirement plan, including but 2 not limited to a plan qualified under section 401(a), 401(k), 3 403(a), 403(b), 408(k), 408(p), or 457(b) of the Internal 4 Revenue Code. Employer contributions to employee accounts 5 are not required. An employer that participates in the trust 6 shall have no proprietary interest in the contributions to or 7 earnings on amounts contributed to accounts established under 8 the trust. 9 Sec. 4. NEW SECTION . 12L.4 Participant reports. 10 The treasurer of state shall provide reports on the status of 11 trust accounts to participants at least annually. 12 Sec. 5. NEW SECTION . 12L.5 Confidentiality of account 13 information. 14 Except to the extent necessary to administer the Iowa 15 retirement savings plan trust, a participant’s account 16 information for accounts in the trust, including but not 17 limited to names, addresses, telephone numbers, personal 18 identification information, amounts contributed, and earnings 19 on amounts contributed, is confidential. The treasurer of 20 state shall maintain the information as confidential unless the 21 person who provides the information or is the subject of the 22 information expressly agrees in writing that the information 23 may be disclosed. 24 Sec. 6. NEW SECTION . 12L.6 Preemption. 25 A local government shall not establish or offer any 26 retirement plan for persons other than public employees. 27 Sec. 7. NEW SECTION . 12L.7 Limitation of liability. 28 The Iowa retirement savings plan trust, the treasurer of 29 state, and the state of Iowa shall not guarantee any rate of 30 return or any interest rate on any contribution to the trust. 31 The trust, treasurer of state, and the state of Iowa are not 32 liable for any loss incurred by any person as a result of 33 participating in the trust. 34 Sec. 8. NEW SECTION . 12L.8 Program and administrative funds 35 -4- LSB 1503XS (6) 91 sc/ns 4/ 8

S.F. 185 —— investment and payments. 1 1. The treasurer of state shall segregate moneys received 2 by the Iowa retirement savings plan trust into two funds: the 3 program fund and the administrative fund. 4 2. All moneys paid by participants in connection with 5 participation agreements shall be deposited as received into 6 separate accounts within the program fund. 7 3. Contributions to the trust made by participants shall 8 only be made in the form of cash and shall be made pretax. 9 Sec. 9. NEW SECTION . 12L.9 Cancellation of agreements. 10 A participant may cancel a participation agreement at will. 11 Upon cancellation of a participation agreement, a participant 12 shall be entitled to the return of the participant’s account 13 balance subject to penalties prescribed by the Internal Revenue 14 Code. 15 Sec. 10. NEW SECTION . 12L.10 Annual audited financial 16 report. 17 1. The treasurer of state shall submit an annual audited 18 financial report, prepared in accordance with generally 19 accepted accounting principles, on the operations of the Iowa 20 retirement savings plan trust by January 1 to the governor and 21 the general assembly. 22 2. The annual audit shall be made either by the auditor 23 of state or by an independent certified public accountant 24 designated by the auditor of state and must include direct and 25 indirect costs attributable to the use of outside consultants, 26 independent contractors, and any other persons who are not 27 state employees. 28 3. The annual audit must be supplemented by all of the 29 following information prepared by the treasurer of state: 30 a. Any related studies or evaluations prepared in the 31 preceding year. 32 b. A summary of the benefits provided by the trust, 33 including the number of participants in the trust. 34 c. A list of the companies that are participating in the 35 -5- LSB 1503XS (6) 91 sc/ns 5/ 8

S.F. 185 trust and the contributions the companies made. 1 d. Any other information which is relevant in order to make 2 a full, fair, and effective disclosure of the operations of the 3 trust. 4 Sec. 11. NEW SECTION . 12L.11 Tax considerations. 5 For federal tax purposes, the Iowa retirement savings plan 6 trust shall conform to the requirements established by the 7 Internal Revenue Code to be able to operate as a retirement 8 plan. The plan may conform to the requirements under section 9 401(a), section 408, or another section of the Internal Revenue 10 Code which allows Iowans the best retirement option under the 11 trust as determined by the treasurer of state. 12 Sec. 12. NEW SECTION . 12L.12 Property rights to assets in 13 trust. 14 1. The assets of the Iowa retirement savings plan trust 15 shall at all times be preserved, invested, and expended solely 16 and only for the purposes of the trust and shall be held in 17 trust for the participants. 18 2. No property rights in the trust shall exist in favor of 19 the state. 20 3. The assets of the trust shall not be transferred or used 21 by the state for any purposes other than the purposes of the 22 trust. 23 Sec. 13. NEW SECTION . 12L.13 Exemption from execution and 24 other process or assignment —— exceptions. 25 The right of any person to any future payment under this 26 chapter is not transferable or assignable, at law or in 27 equity, and the moneys paid or payable or rights existing under 28 this chapter are not subject to execution, levy, attachment, 29 garnishment, or other legal process, or to the operation of 30 any bankruptcy or insolvency law except for the purposes of 31 enforcing child, spousal, or medical support obligations or 32 marital property orders. For the purposes of enforcing child, 33 spousal, or medical support obligations, the garnishment or 34 attachment of or the execution against compensation due a 35 -6- LSB 1503XS (6) 91 sc/ns 6/ 8

S.F. 185 person under this chapter shall not exceed the amount specified 1 in 15 U.S.C. §1673(b). 2 Sec. 14. NEW SECTION . 12L.14 Construction. 3 This chapter shall be construed liberally in order to 4 effectuate its purpose. 5 Sec. 15. IMPLEMENTATION PROVISION. The treasurer of state 6 shall provide that when the requirements of chapter 12L are 7 enacted, individuals may begin making contributions to the Iowa 8 retirement savings plan trust, as created by section 12L.2, as 9 enacted in this Act, no earlier than July 1, 2026. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill creates the Iowa retirement savings plan trust 14 under the office of treasurer of state for the purpose of 15 helping Iowans save for retirement. The bill provides that 16 the trust be operated so that, for federal tax purposes, it 17 meets the requirements of a retirement plan as provided by the 18 Internal Revenue Code and functions according to other federal 19 law. 20 The state treasurer is the trustee of the trust and has 21 numerous powers, as specified in the bill, for the purpose of 22 carrying out the purpose of the trust. Powers granted the 23 treasurer of state to effectuate the purpose of the trust 24 include entering into agreements with trust participants and 25 employers, investing moneys in the trust, and entering into any 26 agreements or contracts necessary to carry out the purposes of 27 the trust. 28 The bill provides that individuals who are employed for 29 compensation in this state and whose wages are subject to 30 withholding by the state are automatically enrolled in the 31 trust by the treasurer of state with a default contribution 32 rate of 5 percent, which can be adjusted at the participant’s 33 request. A participant may opt out of the trust at any time. 34 Employers may allow employees to have their contributions 35 -7- LSB 1503XS (6) 91 sc/ns 7/ 8

S.F. 185 deducted from their paychecks. Employer contributions to the 1 trust are not required, and if an employer chooses to make 2 contributions, the employer has no proprietary right to the 3 moneys in the trust. 4 The bill requires the treasurer of state to provide 5 participants with reports on the trust fund at least once per 6 year. The bill also requires that all participant account 7 information be maintained as confidential, except as necessary 8 to administer the trust or as agreed to in writing by the 9 person who provides the information or is the subject of the 10 information. 11 The bill prohibits local governments from establishing 12 or offering retirement plans for anyone other than public 13 employees. 14 The bill provides that the state, the treasurer of state, 15 and the trust shall not guarantee any rate of return on any 16 contributions to the trust and are not liable for any loss 17 incurred by any person as a result of participating in the 18 trust. The bill requires the treasurer to submit an annual 19 audited financial report on the operations of the trust. 20 The bill provides that when the requirements of the bill 21 are enacted, the treasurer shall not allow individuals to make 22 contributions to the trust earlier than July 1, 2026. 23 -8- LSB 1503XS (6) 91 sc/ns 8/ 8