Note: This is a summary of a select section of Public Act 16-29. Click here to view Public Act 16-29 in its entirety.
A qualified employer that maintains a retirement plan recognized under the federal tax code or approved by the authority is exempt from the bill’s requirements to provide the informational material and automatically enroll qualified employees.
If the authority determines that an employer is not continuing to maintain its retirement plan recognized under the federal tax code then the employer is no longer exempt from the bill. An employer will no longer be considered exempt if the authority determines:
- as of the first day of the previous calendar year, no new participant was eligible to be enrolled in a the retirement plan by the qualified employer, and
- on and after the first day of the previous calendar year, no contributions were made to the retirement plan by or on behalf of a participant.
The bill does not specify what the authority will consider when determining whether an employer retirement plan, other than one recognized under federal tax law, is exempt. Click here to view more Public Act 16-29 summaries.