HB466 Summary

• Requires all new public employees hired on or after January 1, 2017 by participating employers in the Teachers' Retirement System, Employees' Retirement System, or Judicial Retirement Fund to be automatically enrolled in individual retirement accounts (PEIRAF).

• Sets the default contribution amount at 1.5% of pre-tax compensation, with employees able to adjust their contribution amount at time of enrollment subject to board-established limitations.

• Allows employees to opt out within 90 days of their first contribution and withdraw contributions without penalty, or choose to enroll in an alternative employer-offered deferred compensation plan instead.

• Requires employers to provide written notice to automatically enrolled employees explaining their right to opt out during the 90-day period and comparing fees between the PEIRAF and alternative plans.

• Authorizes the board of control to adopt an optional auto-escalation program that would automatically increase employee contributions as salaries increase.