KY HB597

Establishes the Commonwealth Retirement Savings Plan, a voluntary payroll-deduction Roth IRA administered by the State Treasurer's office for private sector employees of small businesses with fewer than 50 employees

Creates a 7-member board of trustees chaired by the State Treasurer, including cabinet secretaries and appointed members with retirement plan expertise, to oversee the plan with fiduciary duties

Requires employers to participate voluntarily and employees to enroll only by affirmative election—no automatic enrollment—with employees selecting their own contribution levels and investment options

Shields participating employers from fiduciary liability for employee decisions, investment performance, or plan administration, and explicitly states the plan is not an ERISA-covered employee benefit plan

Sets implementation date of July 1, 2028, with funding through General Assembly appropriations, Kentucky Economic Development Finance Authority loans, or private contributions, and requires the State Treasurer to report on implementation progress by July 1, 2027