North Carolina SB 110: North Carolina Work and Save.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 110

Short Title: North Carolina Work and Save. (Public)
Sponsors: Senators Hanig, Moffitt, and Adcock (Primary Sponsors).
Referred to: Rules and Operations of the Senate
February 18, 2025
*S110-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO CREATE THE SMALL BUSINESS RETIREMENT SAVINGS PROGRAM AND 2
TO APPROPRIATE FUNDS. 3
Whereas, the General Assembly finds that too many North Carolina citizens have no 4
or inadequate savings for retirement, and an estimated 1.7 million North Carolina working 5
families, including employees, independent contractors, and the self-employed, have no access 6
to an employer-sponsored retirement plan or program or any other easy way to save at work; and 7
Whereas, it is the policy of the State to assist the North Carolina private-sector 8
workforce, including in particular moderate- and lower-income working households, to 9
voluntarily save for retirement, including by facilitating saving in individual retirement accounts 10
(IRAs) as well as by encouraging employers to adopt retirement savings and other retirement 11
plans for employees in the State; and 12
Whereas, more adequate, portable, low-cost, and consumer-protective retirement 13
saving by North Carolina households will enhance their retirement security and ultimately reduce 14
the pressure on State public assistance programs for retirees and other elderly citizens and the 15
potential burden on North Carolina taxpayers to finance such programs; and 16
Whereas, the General Assembly intends to establish a North Carolina Work and Save 17
Program that will use the services of competent and qualified private-sector entities selected by 18
the North Carolina Small Business Retirement Savings Program Board to administer the Program 19
and manage the funds on behalf of the Program participants; and 20
Whereas, the North Carolina 529 College Savings Program has demonstrated the 21
feasibility of a public-private partnership that outsources investment and administration to assist 22
private citizens of the State to save on a voluntary and cost-efficient basis; Now, therefore, 23
The General Assembly of North Carolina enacts: 24
SECTION 1. Article 6 of Chapter 147 of the General Statutes is amended by 25
designating G.S. 147-65 through G.S. 147-86.6 as Part 1 with the heading "General Provisions, 26
Powers, and Duties; Investment; and Funds." 27
SECTION 2. Article 6 of Chapter 147 of the General Statutes is amended by adding 28
a new Part to read: 29
"Part 2. North Carolina Small Business Retirement Savings Program. 30
"§ 147-86.7A. Title. 31
This Part shall be known as the "North Carolina Small Business Retirement Savings 32
Program" or "North Carolina Work and Save." 33
"§ 147-86.7B. Definitions. 34
The following definitions apply in this Part: 35

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 110-First Edition
(1) Administrative Fund. – The North Carolina Small Business Retirement 1
Savings Administrative Fund established in G.S. 147-86.7V. 2
(2) Board. – The North Carolina Small Business Retirement Savings Program 3
Board. 4
(3) Covered employee. – An individual who is employed by a covered employer, 5
who has wages or other compensation that is allocable to the State, and who 6
is at least 18 years of age. A covered employee does not include any of the 7
following: 8
a. Any employee covered under the federal Railway Labor Act (45 9
U.S.C. § 151). 10
b. Any employee on whose behalf an employer makes contributions to a 11
Taft-Hartley multiemployer pension trust fund. 12
c. Any individual who is an employee of the federal government, the 13
State or any other state, any county or municipal corporation, or any 14
of the State's, any other state's, or the federal government's units or 15
instrumentalities. 16
(4) Covered employer. – A person or entity engaged in a business, industry, 17
profession, trade, or other enterprise in the State, whether for-profit or not for 18
profit, excluding the federal government, the State, any county, any 19
municipality, or any political subdivision of the State, and provided that 20
covered employer does not include an employer that maintains a specified 21
tax-favored retirement plan for its employees or has done so effective in form 22
and operation at any time within the current or two preceding calendar years. 23
If an employer does not maintain a specified tax-favored retirement plan for a 24
portion of a calendar year ending on or after the effective date of this Part and 25
adopts such a plan effective for the remainder of that calendar year, the 26
employer is exempt from covered employer status for that remainder of the 27
year. 28
(4a) Department. – The Department of State Treasurer. 29
(5) ERISA. – The Employee Retirement Income Security Act of 1974, as 30
amended (29 U.S.C. § 1001 et seq.). 31
(6) Internal Revenue Code. – The Internal Revenue Code of 1986, as amended 32
(Title 26 of the United States Code