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Read. Follow. Verify.Kentucky establishes voluntary Commonwealth Retirement Savings Plan for private-sector small business employees
Last action · February 17, 2026: to Small Business & Information Technology (H)Sponsor: Deanna Gordon
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What This Bill Proposed
Kentucky creates a voluntary, payroll-deduction program called the Commonwealth Retirement Savings Plan for private-sector employees of small businesses with fewer than 50 workers, set to begin enrollment on July 1, 2028. Administered by a seven-member board of trustees attached to the State Treasurer's office, the plan operates outside the State Treasury and does not involve state guarantees or employer liability.
Small business workers gain access to a low-cost, portable retirement savings vehicle through voluntary payroll deductions, while participating employers face no responsibility or mandatory setup costs.
- State-facilitated retirement savings programs for private-sector workers without access to employer-sponsored plans have been enacted in multiple U.S. states to address retirement savings gaps. context
- The State Treasurer serves as an ex officio constitutional officer in Kentucky responsible for state funds management and serves on various financial and administrative boards. context
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
small businesses with fewer than 50 employees
Employers may voluntarily elect to offer payroll-deduction retirement savings arrangements without assuming fiduciary liability or responsibilities.
private-sector employees of small businesses
Employees aged 18 and older working for participating employers gain the option to voluntarily enroll in a payroll-deduction Roth IRA.
State Treasurer
The State Treasurer serves as ex officio board chair, oversees administrative attachment, and submits an implementation update to the Legislative Research Commission by July 1, 2027.
Key Facts
- Establishes the Commonwealth Retirement Savings Plan as a voluntary payroll-deduction Roth IRA administered by a 7-member board of trustees chaired by the State Treasurer.
- Applies to small business employers with fewer than 50 employees who voluntarily choose to participate, and to employees 18 years of age or older.
- Sets plan implementation and employee enrollment to begin on July 1, 2028, subject to potential delay if adequate implementation funds are not obtained.
- Requires the State Treasurer to provide a written implementation update to the Legislative Research Commission on or before July 1, 2027.
Show all 9 facts
- Prohibits state guarantees on fund performance and shields participating employers from fiduciary liability or responsibility for employee investment decisions.
- Creates the Commonwealth Retirement Savings Plan fund as a trust fund outside the State Treasury, prohibiting the Commonwealth from having a claim to or commingling public funds with it.
- Authorizes the Kentucky Economic Development Finance Authority to provide loans to help implement the retirement plan and support small businesses.
- Exempts individual participant account information and personally identifiable information from public records laws under KRS 61.870 to 61.884.
- Requires the board to engage a plan vendor through a competitive procurement process under KRS Chapter 45A, requiring fiduciary, errors and omissions, and cybersecurity insurance.
Frequently Asked Questions
Are small business employers required to participate in the plan?
Are employees automatically enrolled in the plan?
Does the state guarantee the investment returns of the retirement plan?
When is enrollment scheduled to begin?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · in House committee.
Procedural history
2 actions- Feb 17, 2026HouseCommitteeto Small Business & Information Technology (H)
- Feb 9, 2026HouseIntroducedintroduced in House to Committee on Committees (H)
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Establishment of State-Facilitated Retirement Plan
Kentucky creates a voluntary retirement savings vehicle for private-sector workers outside of traditional state employee pension systems.
Connected Entities
Sources
apps.legislature.ky.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 65)
- Controversy25Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz30Current news / social attention level
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