A task force created by Wisconsin Gov. Tony Evers has recommended the formation of a state-run retirement savings plan called WisconsinSaves.
Mr. Evers created the Wisconsin Retirement Security Task Force by executive order in September 2019. Chaired by Wisconsin State Treasurer Sarah Godlewski, the task force in its Feb. 10 report recommended the creation of a state-facilitated, privately managed auto-IRA program for the 930,000 workers in Wisconsin between the ages of 18 and 64 who are not covered by a retirement plan.
Employers in Wisconsin would have the choice of creating their own plan, joining a multiemployer plan or participating in WisconsinSaves.
The default account in WisconsinSaves would be a Roth IRA, with employees given the option of a traditional IRA, and the default contribution rate would be 5% of gross income.
The task force also recommended the launching of a "401(K)ids" program that would create an investment account for every child born in Wisconsin, the development of an emergency savings tool as a "rainy day fund" for employees.
The report cites similar state-run programs such as OregonSaves and Illinois Secure Choice as models to follow.
“We are excited to move forward with implementing our comprehensive retirement solutions, whether it be 401(K)ids that would provide a retirement account for every child the day they are born or helping small businesses provide their employees with a workplace retirement account through WisconsinSaves,” Ms. Godlewski said in an emailed statement. “These are real ways to ensure that every Wisconsinite has the opportunity to retirement with peace of mind and financial security.”
Mr. Evers included the proposals in his state budget this week, said Julie Benkoski, spokeswoman for Ms. Godlewski. “Our office looks forward to continuing to work with partners on making these solutions a reality through the legislative process,” she said.
The report is available on Ms. Godlewski's website.