                                 CODE OF VIRGINIA

PROGRAM ENROLLMENT; PARTICIPATING EMPLOYER LIABILITY AND STATUS UNDER THE
PROGRAM (§ 2.2-2751)

A. 1. Any employer that is not an eligible employer may facilitate the
participation of its eligible employees in the Program. However, such employer
shall take all steps necessary to ensure that such facilitation does not
constitute an employee benefit plan regulated under Title I of the Employee
Retirement Income Security Act (ERISA).

   2. Any eligible employee whose employer does not facilitate his participation
   in the Program pursuant to subdivision 1 or any self-employed individual may
   participate in the Program under terms and conditions prescribed by the Board.

   3. No eligible employee or self-employed individual shall be permitted to
   participate in the Program unless such individual has Virginia taxable income,
   as defined in Article 2 (&#xA7; 58.1-320 et seq.) of Chapter 3 of Title 58.1.

B. The Program shall be established and enrollment of eligible employers shall
begin on July 1, 2023, or as soon thereafter as practicable. The Board shall
establish an implementation timeline under which eligible employers shall enroll
their eligible employees in the Program.

C. The Board shall develop a Program rollout timeline, including deadlines for
the enrollment of eligible employers. The Board may alter the rollout timeline
in its discretion, though in all instances any alterations of established
rollout dates shall include reasonable notice to affected eligible employers.

D. Participation in the Program shall be mandatory for eligible employers.
Eligible employers shall enroll in the Program in accordance with the timeline
established by the Plan. Eligible employers shall facilitate a payroll deposit
retirement savings agreement pursuant to this chapter for their eligible
employees.

E. Each eligible employee of an eligible employer shall be enrolled in the
Program unless the employee elects not to participate in the Program in a manner
prescribed by the Board.

F. A participating employee may also terminate his participation in the Program
at any time in a manner prescribed by the Board.

G. Participating employers shall not have any liability for a participating
employee&#8217;s decision to participate in or opt out of the Program or for the
investment decisions of participating employees whose assets are deposited in
the Program.

H. Participating employers shall not be a fiduciary, or considered to be a
fiduciary, over the Program. The Program is a state-administered program, not an
employer-sponsored program. If the Program is subsequently found to be preempted
by any federal law or regulation, participating employers shall not be liable as
Program sponsors. A participating employer shall not bear responsibility for the
administration, investment, or investment performance of the Program. A
participating employer shall not be liable with regard to investment returns,
Program design, and benefits paid to Program participants.

I. A participating employer shall not have civil liability, and no cause of
action shall arise against a participating employer, for acting pursuant to this
chapter.

J. The Board shall develop and provide to participating employees and
participating individuals Program summaries and other information concerning
participation in the Program, including information on Program investments and
fees, and the consequences of contributing to an IRA, and a statement that the
Program is not an employer-sponsored retirement plan, as required by applicable
law and as otherwise determined by the Board.

K. Participating employers shall retain the option at all times to set up any
type of employer retirement plan, including plans qualified under &#xA7; 401(a),
403(a), 403(b), 408(k), or 408(p), of the Internal Revenue Code, in which event
such employer shall no longer be considered an eligible employer and shall cease
facilitating contributions to the Program in accordance with such procedures as
shall be established by the Board.

L. No employer shall be permitted to contribute to the Program or to endorse or
otherwise promote the Program.

M. The Program shall be exempt from the provisions of subsection C of &#xA7;
40.1-29.

HISTORY: 2021, Sp. Sess. I, c. 556.