HB 5776 Summary

• Establishes the Michigan Secure Retirement Savings Program as an automatic enrollment payroll deduction IRA for private-sector employees at employers with 25+ employees that lack a qualified retirement plan.

• Creates a 7-member Secure Retirement Savings Board within the Department of Treasury to administer the program, including the state treasurer (chair), DTMB director, two public experts, one employer representative, and one employee representative appointed by the governor.

• Requires employers with 25+ employees to automatically enroll eligible employees at a default 3% contribution rate, with employees able to opt out or select different contribution levels; small employers may voluntarily participate.

• Establishes the Michigan Secure Retirement Savings Program Fund as a trust outside the state treasury holding individual retirement accounts, and the Secure Retirement Administrative Fund in the state treasury to cover program administration costs capped at 0.75% of total trust balance.

• Imposes civil penalties on employers failing to enroll employees: $250 per employee for the initial calendar year and $500 per employee for subsequent years of non-compliance, with fines collected deposited to the state general fund.