HB 1279 Summary

• Establishes the Hoosier Employee Retirement Option (HERO) plan as individual retirement accounts with post-tax contributions via payroll deduction to encourage retirement savings among Indiana private sector workers.

• Creates a 9-member board consisting of 4 state officials (treasurer, auditor, OMB director, labor commissioner) and 5 governor-appointed members with expertise in retirement plans, federal labor law, employer operations, and participant perspectives.

• Plan is voluntary for employers who do not offer any other retirement plan; employees may elect to participate with a default 3% contribution rate, selecting from at least 8 diversified investment options plus a target-date life cycle fund.

• Board must annually prepare investment policy statements, conduct plan audits, submit financial performance reports to the governor and general assembly, and select plan administrators through competitive bidding while minimizing administrative costs.

• State, board, and participating employers are not fiduciaries and bear no liability for plan performance, investment losses, or benefit payments; plan is not a state debt or obligation, and plan implementation must occur within 24 months of the board's effective date (July 1, 2015).