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:
- 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.
- The optimal oversight for a public-private partnership individual retirement program.
- The barriers that keep Arizonans from saving for retirement and prevent employers that do not offer retirement plans currently from offering them.
- 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.
- The impact of the federal SECURE Act on employer-based retirement plans, including whether small employer access to retirement plans has expanded.
- The feasibility, including the risks and benefits, of partnering with other similar public-private partnership individual retirement programs established in other jurisdictions.
- The ability of the state to encourage retirement savings.
- 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.