67-4-23. Retirement plan exchange.
(1) As used in this section:
(a) "Automatic-enrollment individual retirement account arrangement" means an individual retirement account that:
(i) allows an employee to contribute via payroll deduction;
(ii) does not permit employer contributions;
(iii) automatically enrolls each eligible employee at a default contribution rate, unless the employee opts out or chooses a different contribution rate;
(iv) complies with federal safe harbor requirements for payroll deduction individual retirement accounts; and
(v) is portable and fully vested from the time of contribution.
(b) "Automatic-enrollment 401(k) plan" means a defined contribution plan that:
(i) meets the requirements of Section 401(k) of the Internal Revenue Code;
(ii) automatically enrolls each eligible employee unless the employee opts out;
(iii) allows but does not require employer contributions; and
(iv) includes default investment options consistent with Section 404(c) of the Employee Retirement Income Security Act, including the rules governing qualified default investment alternatives.
(c) "Eligible employer" means a non-governmental entity that:
(i) is located in the state or operates in the state; and
(ii) has one or more employees.
(d) "Eligible employee" means an individual who:
(i) works for an eligible employer; and
(ii) receives from the eligible employer compensation that is reportable on Internal Revenue Service Form W-2.
(e) "Exchange" means the online portal described in Subsection (2)(a)(i).
(f) "Individual retirement account" means:
(i) an individual retirement account under Section 408 of the Internal Revenue Code; or
(ii) a Roth individual retirement account under Section 408A of the Internal Revenue Code.
(g) "Office" means the state treasurer's office.
(h) "Participating employee" means an eligible employee who is enrolled in a qualified retirement plan that the eligible employee's employer selected through the exchange.
(i) "Participating employer" means an eligible employer who selects a qualified retirement plan through the exchange.
(j) "Participating plan provider" means a plan provider that has a listing on the exchange.
(k) "Plan provider" means any entity that offers a qualified retirement plan.
(l) "Qualified default investment alternative" means the same as that term is defined in 29 C.F.R. 2550.404c-5.
(m) "Qualified retirement plan" means an automatic-enrollment individual retirement account arrangement or an automatic-enrollment 401(k) plan.
(n) "Small business" means an eligible employer with 50 or fewer employees.
(2)
(a) The office shall:
(i) establish and maintain a secure, publicly accessible online portal through which an eligible employer may review, compare, and select one or more qualified retirement plans for the benefit of the eligible employer's employees;
(ii) create and disseminate educational resources for eligible employers and eligible employees related to:
(A) retirement savings benefits and options; and
(B) the benefits of a financial advisor;
(iii) promote among small businesses retirement savings and use of the exchange;
(iv) collect from participating plan providers information regarding eligible employers' use of the exchange; and
(v) establish a mechanism for soliciting and receiving feedback regarding the exchange from eligible employers and eligible employees.
(b) The office shall ensure that the exchange:
(i) provides eligible employers access to qualified retirement plans;
(ii) does not include retirement arrangements other than qualified retirement plans;
(iii) presents each qualified retirement plan in a standardized and transparent format that includes for each qualified retirement plan:
(A) a summary of the qualified retirement plan's key features;
(B) disclosure of all fees;
(C) an investment menu and performance data, as provided by the plan provider;
(D) a summary of fiduciary roles and responsibilities; and
(E) a description of the enrollment and withdrawal processes; and
(iv) includes a comparison tool that allows an eligible employer to filter and compare qualified retirement plans based on plan features, including cost, investment lineup, service model, and other relevant criteria.
(3)
(a) Subject to Subsections (3)(b) and (c), the office shall list on the exchange a plan provider's qualified retirement plan if the plan provider:
(i) submits an application for listing to the office;
(ii) complies with all applicable state and federal laws regulating the plan provider's activities;
(iii) is in good standing with all relevant state and federal regulating entities;
(iv) for compliance and informational purposes, consents to monitoring by and periodic reporting to the office; and
(v) satisfies any additional criteria the office establishes by rule.
(b) During the first 24 calendar months after the exchange begins operation, the office may limit the number of plan providers allowed to list a qualified retirement plan on the exchange, if the office bases the limitation on neutral, objective criteria established by rule, including readiness, technical feasibility, or availability of plan offerings.
(c) Within a reasonable time after the time period described in Subsection (3)(b) expires, the office shall list on the exchange each qualified retirement plan approved in accordance with Subsection (3)(b).
(4) The office may limit the qualified retirement plans that the exchange presents to an eligible employer conducting a search on the exchange, if:
(a) the purpose of limiting the qualified retirement plans is to enhance usability;
(b) the office determines which qualified retirement plans the exchange presents by using a methodology that ensures each participating plan provider has a comparable number of qualified retirement plans presented to eligible employers over a defined time period; and
(c) the office maintains on the exchange a publicly accessible and searchable list of all qualified retirement plans listed on the exchange.
(5)
(a) Each participating plan provider shall annually submit to the office a report that includes for the fiscal year:
(i) the number of eligible employers and eligible employees participating in the participating plan provider's qualified retirement plans through the exchange;
(ii) for the participating plan provider's qualified retirement plans listed on the exchange:
(A) the total assets administered by the participating plan provider;
(B) the average account balance;
(C) the eligible employee opt-out rate; and
(D) each material change to the structure, fees, or investments that occurred during the fiscal year.
(b) A report described in Subsection (5)(a) is a protected record as provided in Section 63G-2-305.
(6) A participating plan provider shall promptly notify the office of any legal or regulatory action affecting the participating plan provider's ability to comply with the provisions of this section.
(7) The office may remove or suspend a plan provider's listing if the office determines that the plan provider:
(a) fails to comply with a provision of this section;
(b) submits to the office false or misleading information;
(c) engages in conduct that is detrimental to participating employers or participating employees, including charging excessive fees, mismanaging assets, or breaching a fiduciary duty; or
(d) fails to cooperate with an office request related to the monitoring or reporting described in Subsection (3)(a)(iv).
(8) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the office shall make rules establishing:
(a) procedures and criteria for applying to list a qualified retirement plan under Subsection (3)(a);
(b) monitoring and reporting requirements for participating plan providers;
(c) the neutral, objective criteria used to limit participating plan providers under Subsection (3)(b);
(d) the methodology and time period described in Subsection (4)(b); and
(e) procedures for suspension or removal under Subsection (7).
(9)
(a) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, the office may contract with one or more providers to fulfill the office's duties under this section.
(b) The office may not contract under this Subsection (9) with a plan provider.
(10) Nothing in this section authorizes the state or any subdivision of the state to:
(a) assume fiduciary responsibility with respect to any qualified retirement plan offered through the exchange;
(b) act as a fiduciary, investment manager, or plan sponsor as those terms are defined in 29 U.S.C. Sec. 1002;
(c) act as an investment adviser as defined in 15 U.S.C. Sec. 80b-2;
(d) endorse, recommend, rate, or guarantee the performance or suitability of any qualified retirement plan listed on the exchange; or
(e) provide individualized financial advice.
(11) The office shall:
(a) establish the exchange platform no later than November 2, 2026;
(b) begin accepting applications from plan providers no later than November 2, 2026; and
(c) ensure the exchange begins operation no later than January 1, 2027.
Enacted by Chapter 335, 2026 General Session
