March 10, 2022 - Introduced by Senators Ringhand, Agard, Carpenter, Larson,
Roys and L. Taylor, cosponsored by Representatives Goyke, Andraca,
Baldeh, Brostoff, Cabrera, Conley, Considine, Drake, Haywood, Hebl,
Hintz, B. Meyers, Milroy, Pope, Riemer, Shankland, Sinicki, Snodgrass,
Spreitzer, Subeck, Vining and Vruwink. Referred to Committee on Financial
Institutions and Revenue.
SB1100,1,6 1An Act to amend 16.705 (9), 71.05 (6) (a) 15., 71.21 (4) (a), 71.26 (2) (a) 4., 71.34
2(1k) (g) and 71.45 (2) (a) 10.; and to create 14.57, 14.69, 20.517, 20.923 (4) (c)
37., 25.52, 71.07 (4s), 71.07 (4w), 71.10 (4) (ct) and (cu), 71.28 (4s), 71.28 (4w),
471.30 (3) (ct) and (cu), 71.47 (4s), 71.47 (4w), 71.49 (1) (ct) and (cu) and 230.08
5(2) (en) of the statutes; relating to: creating WisEARNS and making an
6appropriation.
Analysis by the Legislative Reference Bureau
WisEARNS retirement savings program
This bill creates a program called “WisEARNS” to provide a defined
contribution retirement savings plan for employees of private employers in this state
that do not offer an employer-sponsored retirement plan or that do not offer such a
plan to all employees. A defined contribution retirement savings plan is one that
pays retirement benefits based on an individual's account balance, rather than a
prescribed formula.
The bill creates a WisEARNS Board that is attached to the Office of the State
Treasurer. Under the bill, the board consists of the following nine members: the state
treasurer or his or her designee; the secretary of financial institutions or his or her
designee; two members appointed by the governor; two members appointed,
respectively, by the speaker of the assembly and president of the senate; one member

appointed by the state treasurer; one member appointed by the State of Wisconsin
Investment Board; and one member appointed by the other members. The bill
requires certain members to possess specified attributes or experience, and all
members except the state treasurer and secretary of financial institutions, or their
designees, serve four-year terms.
Under the bill, the state treasurer recommends a candidate for executive
director of the plan to the board, with the board approving the executive director. The
state treasurer sets the duties of the executive director and staff. The executive
director serves outside the classified service and appoints staff outside the classified
service. The executive director serves at the pleasure of the board.
Under the bill, the board is required to establish the savings plan under which
employees may contribute to retirement savings accounts through payroll
deductions. Before establishing the plan, the board must conduct a legal analysis of
the applicability of the Internal Revenue Code and the Employee Retirement Income
Security Act of 1974 to the proposed plan, and must issue a request for information
from prospective vendors of a variety of defined-contribution retirement accounts
authorized under the Internal Revenue Code.
Under the bill, the default account type is a Roth IRA. The bill requires the
board to design the plan and contract with third-party investment administrators
to operate the plan. Among other requirements, the plan must do at least all of the
following: 1) require automatic participation by private employers in this state; 2)
require automatic enrollment for employees, but allow employees to opt out before
any payroll deduction is made; 3) prohibit employer contributions to employee
retirement accounts; and 4) allow an employee to roll over the amounts in an account
to a different IRS-qualified retirement account.
Also under the bill, unless the employee directs otherwise, during the
employee's first year of enrollment in the plan, the employer must make a payroll
deduction each pay period at a rate of 5 percent of the employee's gross wages, with
this rate increasing by 1 percent per year until the rate is the maximum rate allowed
under the Internal Revenue Code. Under the plan, the eligible employee must have
certain investment options within each account type, including a stable value or
capital preservation fund and a target date index fund or age-based fund. An eligible
employee's first $400 of contributions must be deposited in a savings account that is
not a retirement savings account, and thereafter, unless the employee selects a
different investment option, the employee's contributions must be deposited in a
target date index fund or age-based fund. An employee must be allowed to opt out
of this provision before the first $400 is deposited. The bill requires the board to
establish a policy for emergency withdrawals from a WisEARNS savings account
that is not a retirement savings account.
Under current law, DOA is authorized to purchase contractual services for most
bodies of state government. Under the bill, the board is exempted from some of the
requirements of contracting through DOA and instead must do all of the following
before awarding the contract: 1) conduct a cost-benefit analysis of contracting with
different vendors; 2) review and ensure the independence of the vendor and the
vendor's employees; and 3) require proof of background checks of the vendor and the

vendor's employees. The bill also requires the board to maintain a list of any vendor
or party to the contract that violates the contract or requirements of the law, and to
provide that list to DOA for inclusion on the ineligible list for state contracts.
Tax credits for retirement plan startup costs and automatic enrollment
The bill creates two income and franchise tax credits that may be claimed by
small businesses that have 100 or fewer employees who received at least $5,000 in
compensation during the preceding year. Both credits are based on similar federal
tax credits. The first credit may be claimed by small businesses for the costs of
setting up and administering a retirement plan and educating employees about the
plan. The credit is 50 percent of the costs, limited to the greater of $500 or the lesser
of $5,000 or $250 multiplied by the number of non-highly compensated employees
who are eligible to participate in the plan. The credit may be claimed for three
consecutive years and may be not be claimed for any costs that were deducted under
federal law. The second credit may be claimed by small businesses that provide for
automatic enrollment in their retirement plans. The credit is $500 and may be
claimed for three consecutive years, beginning with the year in which the small
business first provides for automatic enrollment.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB1100,1 1Section 1. 14.57 of the statutes is created to read:
SB1100,3,2 214.57 Same; attached boards.
SB1100,3,9 3(1) WisEARNS board. There is created a WisEARNS board that is attached
4to the state treasurer under s. 15.03. Of the members appointed under pars. (a) to
5(e), least one must have experience in the field of investments, at least one must have
6experience as the owner of a business that employs between 5 and 50 people, and at
7least one must be an employee who is not eligible for or does not have access to an
8employer-sponsored retirement plan. The board shall consist of the following
9members appointed for 4-year terms:
SB1100,3,1010 (a) The state treasurer or his or her designee.
SB1100,3,1111 (b) The secretary of financial institutions or his or her designee.
SB1100,4,3
1(c) One member who has a favorable reputation for skill, knowledge, and
2experience in the field of retirement saving and investments, appointed by the
3governor.
SB1100,4,54 (d) One member who has a favorable reputation for skill, knowledge, and
5experience relating to small business, appointed by the governor.
SB1100,4,96 (e) One member who is a representative of an association representing
7employees or who has a favorable reputation for skill, knowledge, and experience in
8the interests of employees in retirement saving, appointed by the speaker of the
9assembly.
SB1100,4,1210 (f) One member who has a favorable reputation for skill, knowledge, and
11experience in the interests of employers in retirement saving, appointed by the
12president of the senate.
SB1100,4,1513 (g) One member who has a favorable reputation for skill, knowledge, and
14experience in retirement investment products or retirement plan designs, appointed
15by the state treasurer.
SB1100,4,1616 (h) One member appointed by the investment board.
SB1100,4,1817 (i) One member appointed, notwithstanding s. 15.07 (4), by a majority vote of
18all of the members identified in pars. (a) to (h).
SB1100,4,22 19(2) Membership prohibited. No individual appointed under sub. (1) (a) to (h)
20may be a dealer or broker in securities, or be employed by an entity that is primarily
21a dealer or broker in securities, and any member who accepts such employment shall
22vacate his or her membership.
SB1100,2 23Section 2. 14.69 of the statutes is created to read:
SB1100,4,24 2414.69 WisEARNS program. (1) Definitions. In this section:
SB1100,4,2525 (a) “Board" means the WisEARNS board.
SB1100,5,3
1(b) “Earnings” means all remuneration for employment or services provided to
2an individual in this state, including salary, fees, bonuses, and including the cash
3value of all remuneration paid in any medium other than cash.
SB1100,5,74 (c) “Eligible employee” means an employee who is 18 years of age or older who
5works in this state and whose private employer does not offer a retirement savings
6plan or who is not eligible to participate in a qualified retirement savings plan offered
7by his or her private employer.
SB1100,5,88 (d) “Investment administrator” means the vendor selected under sub. (3) (e).
SB1100,5,99 (e) “Plan" means the WisEARNS plan established under sub. (3).
SB1100,5,1410 (f) “Private employer” means any person engaging in any activity, enterprise
11or business in this state that has conducted such activity, enterprise, or business in
12this state for at least 2 years after the effective date of this paragraph .... [LRB inserts
13date], and did not offer a retirement plan qualified under the Internal Revenue Code
14during those 2 years.
SB1100,5,1615 (g) “WisEARNS retirement account" means a retirement savings account
16established under the plan.
SB1100,5,1817 (h) “WisEARNS savings account” means a savings account established under
18the plan that is not a retirement savings account.
SB1100,5,22 19(2) Duties of treasurer, executive director, and board. (a) The treasurer
20shall recommend an executive director of the plan to the board, which shall appoint
21an executive director outside the classified service, to serve at the pleasure of the
22board. The executive director may not be a member of the board.
SB1100,5,2423 (b) The executive director appointed under par. (a) shall appoint staff for the
24plan outside the classified service.
SB1100,6,5
1(3) Establishment of plan. The board shall establish, implement, and oversee
2a plan that meets the requirements specified in sub. (8) that shall enroll eligible
3employees beginning not more than 2 years after the effective date of this subsection
4.... [LRB inserts date]. Before establishing and implementing the plan, the board
5shall do all of the following:
SB1100,6,86 (a) Conduct a legal analysis regarding the applicability of the federal Employee
7Retirement Income Security Act of 1974, 29 USC 1001 to 1461, and the Internal
8Revenue Code to the proposed plan.
SB1100,6,129 (b) Enter into interagency agreements with the department of revenue, the
10department of financial institutions, and the department of workforce development
11to assist the board in providing outreach services to private employers and
12employees.
SB1100,6,1813 (c) Prepare and issue a request for information from prospective vendors of
14retirement savings accounts described in 26 USC 408 (a), individual retirement
15annuities described in 26 USC 408 (b), individual retirement bonds described in 26
16USC 409
, and individual savings accounts to determine the feasibility of the
17proposed plan and the existence of plans in the private market that meet the
18requirements set forth in sub. (8).
SB1100,6,2119 (d) Investigate ways of allowing individuals who are not automatically enrolled
20in the plan to enroll in the plan and make contributions to retirement savings
21accounts.
SB1100,7,322 (e) Based on the results of the request for information under par. (c), prepare
23and issue a request for proposals from prospective vendors and select a vendor. The
24board shall determine the factors to be considered in selecting a vendor for the plan,
25which shall include the ability of the vendor to meet all of the requirements of the

1plan set forth in sub. (8) (a) to (z). Sections 16.705 and 16.75 do not apply to a contract
2entered into under this section. Before awarding a contract under this section, the
3board shall do all of the following:
SB1100,7,54 1. Conduct a cost-benefit analysis to identify and compare the total cost,
5quality, and technical expertise of the vendors that submitted proposals.
SB1100,7,116 2. Review the independence and relationship, if any, of the vendors that
7submitted proposals to employees of the board, disclosure of any former employment
8of the vendor or employees of the vendor with the board, to minimize the likelihood
9of selection of a vendor that provides or is likely to provide services to industries,
10client groups, or individuals who are the object of state regulation or the recipients
11of state funding to a degree that the vendor's independence would be compromised.
SB1100,7,1812 3. If the vendor or employees of the vendor have access to federal tax
13information received directly from the federal internal revenue service or from a
14source that is authorized by the federal internal revenue service, for the performance
15of services under the contract under this section, require proof of a background
16investigation on each individual performing the services. Such a background check
17shall meet the standards established by the federal internal revenue service under
1826 USC 6103 (p) (4) C.
SB1100,7,2119 (f) Annually review the performance of vendors regarding, at a minimum,
20investment returns, fees, and customer service, and publish results of the review on
21the plan's Internet site.
SB1100,7,2322 (g) Facilitate compliance by the plan with all applicable provisions of the
23Internal Revenue Code and U.S. department of treasury regulations.
SB1100,8,3 24(5) Ineligible vendor list. The board shall maintain a list of persons that are
25or have been a party to a contract under this section that have violated a provision

1of this section or a contract under this section. The board shall annually forward this
2list to the department of administration for inclusion in the ineligible vendor list
3under s. 16.705 (9).
SB1100,8,4 4(6) Powers of board. The board may do any of the following:
SB1100,8,75 (a) Enter into contracts or other arrangements for any of the following services
6as necessary for implementing and overseeing the plan and otherwise carrying out
7the purposes of this section:
SB1100,8,108 1. The services of financial institutions and depositories and of consultants,
9accountants, attorneys, investment advisers, investment administrators, 3rd-party
10administrators, and other professionals.
SB1100,8,1211 2. The services of other state agencies under interagency agreements under
12sub. (3) (b).
SB1100,8,1613 (b) Solicit and accept contributions, gifts, grants, and bequests for the
14WisEARNS plan administration trust fund or for any other purpose for which a
15contribution, gift, grant, or bequest is made and received. Moneys received under
16this paragraph shall be deposited in the WisEARNS plan administration trust fund.
SB1100,8,2217 (c) Enter into agreements with other governmental entities in this state or
18outside this state, which maintain retirement savings programs similar to
19WisEARNS, to collectively invest the assets of the plan to the extent allowed by
20federal law to benefit retirement savings account holders participating in the plan
21by achieving efficiencies designed to minimize costs for the plan and retirement
22savings account holders participating in the plan.
SB1100,8,23 23(7) Duties of board. The board shall do all of the following:
SB1100,8,2424 (a) Promulgate rules for the administration of the plan.
SB1100,9,4
1(b) Collect application, account, or administrative fees to defray the costs of
2administering the plan at the lowest cost possible. Fees collected under this
3paragraph shall be deposited in the WisEARNS plan administration trust fund. Fees
4under this paragraph may not be linked to the value of the trust fund.
SB1100,9,95 (c) Establish a policy for the investment of moneys contributed to a retirement
6savings account, and direct the investment of such moneys in a manner that is
7consistent with any investment restrictions established by the board. Those
8investment restrictions shall be consistent with the objectives of the plan and with
9the standard of responsibility specified in s. 25.15 (2).
SB1100,9,1210 (d) Evaluate the need for, and procure as needed, insurance to cover any
11liabilities of the plan and to cover each member of the board for loss or liability
12resulting from the board member's act or omission as a member of the board.
SB1100,9,1413 (e) Determine the eligibility of employers, employees, or individuals to
14participate in the plan.
SB1100,9,1615 (f) Establish policies for emergency withdrawals from WisEARNS savings
16accounts.
SB1100,9,1817 (g) Exercise any other powers as may be necessary to oversee the plan and
18otherwise carry out the purposes of this section.
SB1100,9,20 19(8) Requirements for plan. The board shall design the plan so that it meets
20all of the following requirements:
SB1100,9,2421 (a) The plan allows eligible individuals employed for compensation in this state
22by a private employer in this state to contribute to WisEARNS accounts through
23payroll deductions. The plan allows self-employed individuals with earnings in this
24state to contribute to WisEARNS accounts.
SB1100,10,7
1(b) The plan requires all private employers in this state to withhold and remit
2employee contributions to the plan through payroll deductions. If an employer offers
3a qualified retirement plan under the Internal Revenue Code, including a plan
4qualified under section 401 (a) or (k), 403 (a) or (b), 408 (k), or 457 (b) of the Internal
5Revenue Code, the employer does not need to withhold and remit employee
6contributions for employees who are eligible to participate in the
7employer-sponsored plan.
SB1100,10,98 (c) Except as provided in par. (d), the plan provides that the default individual
9retirement account is a Roth IRA account.
SB1100,10,1210 (d) If the plan offers options for account types other than a Roth IRA, the plan
11allows an enrolled eligible employee to select any of these other account types for
12investing contributions under the plan.
SB1100,10,1513 (e) The plan provides an eligible employee who is enrolled in the plan with
14multiple investment options within each account type, which may include any of the
15following investment options:
SB1100,10,1616 1. A stable value or capital preservation fund.
SB1100,10,1817 2. A target date index fund or age-based fund that automatically rebalances
18asset allocations based on the eligible employee's age.
SB1100,10,1919 3. A low-cost fund focused on income generation.
SB1100,10,2020 4. A low-cost fund focused on asset growth.
SB1100,10,2121 5. A low-cost fund focused on balancing risk and return.
SB1100,10,2222 (f) The investment policy for the plan includes all of the following concepts:
SB1100,10,2323 1. Best practices in the industry for retirement savings vehicles.
SB1100,10,2424 2. The promotion of portability of retirement savings accounts.
SB1100,10,2525 3. The minimization of fees and expenses.
SB1100,11,2
14. The maximization of possible income replacement, balanced with
2appropriate levels of risk.
SB1100,11,73 (g) The plan requires the investment administrator to offer to each enrolled
4eligible employee, before the employee makes his or her investment selections, a tool
5allowing the employee to identify the employee's risk tolerance and projected
6retirement date as an aid to the employee in selecting suitable investments under
7the plan.
SB1100,11,178 (h) The plan requires that the first $400 of an enrolled eligible employee's
9contributions be deposited in a WisEARNS savings account and thereafter, unless
10the employee selects a different investment option, the employee's contributions be
11to a WisEARNS retirement account and deposited in a fund described in par. (e) 2.
12The plan shall allow an employee to select a different investment option before the
13first $400 is deposited in a WisEARNS retirement account. An employee shall be
14allowed to withdraw the first $400 for emergency use from the employee's
15WisEARNS savings account, and contributions subsequent to the withdrawal shall
16be deposited in the WisEARNS savings account until the amount in the employee's
17WisEARNS savings account is restored to $400.
SB1100,11,2218 (i) Except as provided in par. (k), during an eligible employee's first year of
19enrollment in the plan, the participating employer's payroll deduction each pay
20period shall be at a rate of 5 percent of the employee's gross wages, and this deducted
21amount shall be remitted to the investment administrator as the employee's account
22contribution.
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