Utah Senate Signs Off on Retirement Plan Exchange Bill
The Utah Senate has voted in favor of a bill that would help establish a retirement plan marketplace for hundreds of thousands of small business employees in Utah.
Utah lawmakers passed the bill, HB250, in a 23-1-5 vote shortly after it was greenlighted by the Utah House of Representatives on Jan. 30 in a 71-1-3 vote. It was originally introduced by Sen. Brammer Brady (R-UT) and Rep. Joseph Elison.
If passed by Utah Governor Spencer Cox, the bill would create a retirement plan exchange program for eligible private employers to review and compare different coverage options for employees. This includes an IRA administered by the Internal Revenue Code Section 408, a Roth IRA, and a 401(k) plan.
Specifically, it would direct the state treasurer’s office to “establish and maintain a publicly accessible online exchange through which an eligible private employer may review, compare, and select one or more retirement plans for the benefit of the employer’s employees.”
Retirement plan providers would be able to list a qualified retirement plan on the exchange and would be required submit an annual reporting to the state treasurer’s office.
If passed by Gov. Cox (R-UT), the bill would take effect on May 6, 2026.
The bill could provide retirement plan coverage for half a million workers in Utah. According to estimates by the Pew Charitable Trusts, 578,504 workers, or 48% of Utah’s private sector workforce, currently lack any access to a retirement savings plan.
If Utah passes the legislation, it will follow over a dozen of other states who have enacted government-operated programs as a means to curb retirement plan insecurity. Among the states who already offer state-run auto IRAs and other retirement plan coverage include California, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Minnesota, Nevada, New Jersey, New York, Oregon, Rhode Island, Vermont, Virginia, and Washington.
An analysis of state-facilitated retirement savings programs from the Georgetown University McCourt School of Public Policy found that these plans have already amassed over $2.85 billion in retirement plan assets.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.