Massachusetts S1698 amends the SMART plan to allow automatic enrollment in deferred compensation programs for new employees.

Massachusetts S1698 amends the SMART plan to allow automatic enrollment in deferred compensation programs for new employees hired on or after June 1, 2024. This automatic enrollment does not require employee authorization and is an exception to state laws requiring employee authorization for payroll deductions. The plan must include a qualified default investment option for automatically-enrolled employees who do not choose an investment alternative. The plan must also adhere to notice requirements under the Internal Revenue Code.

Massachusetts S1698 amends the SMART plan to allow automatic enrollment in deferred compensation programs for new employees.

Massachusetts S1698 amends the SMART plan to allow automatic enrollment in deferred compensation programs for new employees hired on or after June 1, 2024. This automatic enrollment does not require employee authorization and is an exception to state laws requiring employee authorization for payroll deductions. The plan must include a qualified default investment option for automatically-enrolled employees who do not choose an investment alternative. The plan must also adhere to notice requirements under the Internal Revenue Code.