SB 555 Summary

• Establishes the Hoosier Employee Retirement Option (HERO) plan as a voluntary individual retirement account program with post-tax contributions made through payroll deduction for employees of participating private-sector employers that do not offer other retirement plans.

• Creates a 9-member board consisting of four state officials (treasurer, auditor, budget director, labor commissioner) and five governor-appointed members with expertise in retirement administration, federal labor law, and plan participation, with the treasurer serving as chair.

• Requires the board to oversee plan administration through contracted investment managers and financial institutions selected via competitive bidding, with annual investment policy statements and audits by the state board of accounts.

• Specifies plan features including a default 3% contribution rate, at least eight investment options (including a target-date lifecycle fund), enrollment once annually, and restrictions prohibiting employer contributions or matching funds.

• Establishes an administrative fund and clarifies that the state, board, and participating employers are not fiduciaries and bear no liability for plan performance or participant benefits.

• Effective July 1, 2015.