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Primary Sponsor

Last Action

Re-ref Com On Insurance2025-06-25

Vote Breakdown

No floor votes recorded.

Plain Language Summary

This bill creates the North Carolina Work and Save Program, a state-facilitated retirement savings program for small business employees and self-employed individuals who lack access to employer-sponsored retirement plans. The program would offer payroll deduction IRAs (Individual Retirement Accounts) managed by private financial providers, with a default option of a Roth IRA with a 5% contribution rate, and includes $1 million in state funding for startup costs through 2027.

Arguments in Favor

• •Supporters argue the program addresses a significant gap in retirement security for roughly 1.7 million North Carolina workers without access to employer plans, helping lower and moderate-income workers save for retirement.
• •They contend the program reduces long-term pressure on state public assistance programs for retirees and uses low-cost, portable IRA accounts that participants fully own.
• •The program also encourages employer participation without requiring them to make contributions or bear fiduciary responsibility.

Arguments Against

• •Opponents may argue the program creates new state administrative costs and bureaucracy, despite claims of eventual self-sufficiency through participant fees.
• •Some may question whether state involvement in retirement savings is necessary when private and federal options already exist, or worry that the default 5% contribution rate and auto-escalation features could burden lower-income workers.
• •Additionally, concerns exist about whether the program adequately protects participants from poor investment outcomes or fee structures, given that the state disclaims liability for investment performance.