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Primary Sponsor

Last Action

Re-ref Com On Appropriations/Base Budget2025-05-01

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, self-employed individuals, and independent contractors who lack access to employer-sponsored retirement plans. The program uses payroll deduction to help workers save through individual retirement accounts (IRAs), modeled after successful public-private partnership structures like the NC 529 College Savings Program.

Arguments in Favor

• •Supporters argue this program addresses a significant gap in retirement security for an estimated 1.7 million North Carolinians without access to employer retirement plans.
• •By making retirement savings easier and more affordable through payroll deduction and low-cost, pooled investments, the program could reduce future burden on state public assistance programs for elderly retirees and help workers build retirement security, particularly benefiting moderate- and lower-income households.

Arguments Against

• •Opponents may be concerned about state oversight of private retirement accounts, potential administrative costs and complexity, and whether the program will effectively reach its target population.
• •There are also questions about whether a government-managed program could operate cost-effectively against private alternatives, how employers will handle compliance requirements, and whether startup costs ($1 million) represent good use of state resources when other retirement solutions exist.