Requirements for SRSP
Seattle Mun. Code § 14.36.050
in effect14.36.050 - Requirements for SRSP
A. The SRSP must:
1. Require each covered employer to offer its eligible employees the opportunity to contribute to the SRSP through payroll deductions;
2. Prohibit employers from making contributions to employee accounts and endorsing or otherwise promoting the SRSP;
3. Require a penalty or penalties, as recommended by the Board and approved by the City Council by ordinance, for a covered employer that fails to:
a. Offer an eligible employee the opportunity to contribute;
b. Withhold an eligible employee's contributions;
c. Send an eligible employee's contributions to the investment administrator for the SRSP; or
d. Provide an eligible employee with the disclosures required by this Chapter 14.36;
4. Allow eligible employees to contribute to an account established in their name under the SRSP through payroll deductions;
5. Provide for automatic enrollment of eligible employees and allow them to opt out of the SRSP;
6. Have a default contribution rate set by the Board by rule;
7. Offer default escalation of contribution rates that can be increased or decreased by the Board within the limits allowed by law;
8. Require the maintenance of separate records and accounting for each SRSP account;
9. Provide for reports on the status of SRSP accounts to be provided to SRSP participants at least annually;
10. Allow for account owners to maintain an account regardless of place of employment and to roll over funds into other retirement accounts;
11. Be administered by an independent financial services company selected by the Board through a competitive process;
12. Provide that the City and employers that participate in the SRSP have no proprietary interest in the contributions to or earnings on amounts contributed to accounts established under the SRSP;
13. Keep administration fees in the SRSP low but sufficient to ensure that the SRSP is sustainable;
14. Allow the use of private sector firms to administer and invest the contributions to the SRSP under the supervision and guidance of the Board;
15. Not impose any duties on employers under the Employee Retirement Income Security Act of 1974 (29 U.S.C. § 1001 et seq.); and
16. Be designed and operated in a manner that will not cause it to be an employee benefit plan within the meaning of Section 3(3) of the Employee Retirement Security Act of 1974.
17. Offer at least one investment fund option that is guided by social responsibility.
B. The SRSP, the Board, each Board member, and the City may not guarantee any rate of return or any interest rate on any contribution. The SRSP, the Board, each Board member, and the City may not be liable for any loss incurred by any person as a result of participating in the SRSP except as otherwise required by applicable law.
(Ord. 125467, § 1, 2017.)
Source: City of Seattle, Seattle Municipal Code and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/wa/seattle/codes/municipal_code?nodeId=TIT14HURI_CH14.36SERESAPL_14.36.050RESRFetched: 11/1/2026