Bill(s)
2021 SB 947 and 2021 AB 974 create a 401Kids savings program and trust fund which provides a $25 savings account for every child born or adopted in WI after the effective date of the bill.
The bill creates appropriations under 20.515 and provides $1 million GPR annually for initial program funding. Over time, the program is intended to become cost neutral to the state.
ETF is responsible for, among other things, the following duties:
- Establishing and administering a 401Kids savings program (ETF can do this in-house or contract with a vendor).
- Establishing investment guidelines for contributions to and the earnings on 401Kids savings accounts.
- Paying distributions from 401Kids savings accounts.
- Ensuring that, if the department changes vendors, the balances of 401Kids savings accounts are promptly transferred into investment instruments as similar to the original investment instruments as possible.
- Conducting public outreach and fundraising to generate donations for the 401Kids savings program.
- Developing a plan, after the program is fully operational, that allows ETF to devote revenues generated under the program to fund the establishment of future 401Kids savings.
The bill also provides that the state will be reimbursed for administrative costs related to the program.
The department may not expend any moneys from the public employee trust fund for its activities related to the 401Kids program.
The Assembly Ways and Means Committee held a public hearing on 2021 AB 974 on March 1, 2022.
Sponsors
2021 SB 947 was introduced by Sen. Ringhand and referred to the Senate Committee on Financial Institutions and Revenue. 2021 AB 974 was introduced by Rep. Macco and referred to the Assembly Committee on Ways and Means.
Status
Failed to pass pursuant to Senate Joint Resolution 1
Other
Please contact Tarna Hunter, ETF’s Government Relations Director, if you have any questions.