Nevada Employee Savings Trust
While two previous attempts by the Nevada state legislature did not advance, the third time was the charm for establishing a state-run retirement plan in the Silver State.
After the state senate voted in favor of it on May 29, the Nevada Assembly passed SB305 to create a state-run retirement savings program on Sunday by a vote of 35-7, meaning the legislation now just awaits the signature of Nevada Governor Joe Lombardo.
The Nevada Employee Savings Trust would be directed by a board of trustees with the power to establish a retirement savings program and automatically enroll private employees who do not have a retirement savings plan available via their workplace. To be enrolled, an employee would need to be at least 18 years old, have worked at the same place for 120 days and have wages that are allocable to the state, although employees would be able to opt out.
“It is my opinion that if we don’t get people to start saving, our social programs are going to be in trouble in 30 years and 40 years,” said Nevada State Senator Dallas Harris, one of four primary sponsors, said during an April 5 hearing on the bill. “This program costs nothing to the state. It costs nothing to businesses. And it’s completely run on the fees of the participants.”
While the Nevada Chapter of the National Association of Insurance and Financial Advisors opposes the bill believing these “types of state-facilitated retirement programs do not address the foundational reasons Americans are not saving more for retirement,” it does have support from the American Retirement Association.
SEE ALSO:
• How States Define ‘Success’ for Their IRA Mandates
• State-Mandated IRAs Not Crowding Out Private 401(k)s: Pew Research
• State IRA Programs Boost Private 401(k) Plan Adoption
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
