AZ to Study Public-Private Partnerships in Retirement Saving

Arizona is set to study public-private partnerships in retirement savings programs. Gov. Doug Ducey (R) on May 2 signed a measure to create a committee to do so. 

Senate Bill 1375 was introduced on Jan. 25 in the state Senate and on March 8 in the House of Representatives. 

The study committee will be headed by co-chairs, one from each chamber of the state legislature. Its members will consist of: 

• two members of the House, one from each political party, appointed by the Speaker of the House of Representatives; 
• two members of the Senate, one from each political party, appointed by the President of the Senate;
• the state treasurer or the state treasurer’s designee;
• the director of the Department of Administration or the director’s designee;
• a representative of a statewide association that advocates on behalf of Arizona seniors, appointed by the President of the Senate;
• a representative of an organization that advocates on behalf of insurance professionals and financial advisors, appointed by the Speaker of the House;
• a representative of an organization that represents small businesses in Arizona, appointed by the President of the Senate; and
• a representative of a life insurance company or an association of life insurance companies, appointed by the President of the Senate. 

The committee is to research and make recommendations regarding: 

1. The mechanisms that could assist Arizona citizens to be prepared to retire in a financially secure manner, including the operation of a public-private partnership individual retirement program for: (1) employees whose employer does not offer an employer sponsored retirement plan; (2) for self-employed individuals; and (3) independent contractors. 
2. The optimal oversight for a public-private partnership individual retirement program. 
3. The barriers that keep Arizonans from saving for retirement and prevent employers that do not offer retirement plans currently from offering them. 
4. The regulatory and operational burden of small and micro businesses that want to offer payroll deduction retirement savings options to employees but are unable to do so. 
5. The impact of the federal SECURE Act on employer-based retirement plans, including whether small employer access to retirement plans has expanded. 
6. The feasibility, including the risks and benefits, of partnering with other similar public-private partnership individual retirement programs established in other jurisdictions. 
7. The ability of the state to encourage retirement savings. 
8. Potential legislation to address the issues identified by the  study committee.

The committee is to submit a report about its activities and recommendations for legislative or administrative action to the President of the Senate, the Speaker of the House of Representatives by Dec. 31, 2022, and supply a copy to the Secretary of State.