Michigan House Bill HB5336

Michigan 2025-2026 Regular Session

• Introduced: 12/2/25
• Refer: 12/2/25

Caption

Retirement: other; retirement program for certain nonpublic employees to participate in a benefit plan; create, and provide oversight. Creates new act. TIE BAR WITH: HB 5335'25

Impact

The bill is designed to enhance retirement savings accessibility while providing a structured alternative for employees whose employers do not offer retirement plans. It establishes a secure retirement savings program fund that is treated as a trust outside of the state treasury, ensuring that the enrollees’ individual retirement accounts are maintained separately. Furthermore, the bill emphasizes administrative transparency and accountability by mandating regular reports to the Governor and the legislative committees overseeing retirement issues. Each participating employer will need to enact the program within a specified timeline that includes enrolling employees automatically unless they choose to opt out.

Summary

House Bill 5336, referred to as the 'Retirement Savings Program Act', aims to establish a secure retirement savings program for employees who are not offered a qualified retirement plan by their employers. The program will function as an automatic enrollment payroll deduction IRA, intended to facilitate greater retirement savings among private-sector employees who may otherwise lack access to such schemes. The Michigan secure retirement savings program will be managed by the secure retirement savings board, which will be responsible for overseeing contributions, investment options, and administrative functions. Employers are required to participate if they have not provided an existing retirement plan to their employees for the previous two years.

Contention

Points of contention surrounding HB 5336 may include concerns over employer obligations and potential penalties for non-compliance, as employers failing to enroll employees could face civil fines. Critics might argue that the bill could impose an additional financial burden on small businesses that already struggle with operational costs. Additionally, discussions may arise regarding the effectiveness of automatic enrollment in ensuring adequate retirement savings, as well as the adequacy of investment options within the program, considering the diverse needs of employees. Balancing the mandatory participation with flexibility in plan participation and investment choices will be crucial in addressing various stakeholder concerns.