Utah Creates Voluntary Retirement Plan Exchange

On March 24, 2026, Governor Spencer Cox signed Utah House Bill 250 (HB 250), creating the Utah Retirement Plan Exchange, a state-operated online marketplace where private employers can review, compare, and select retirement plans for their employees.

The exchange is voluntary. Utah does not require employers to offer a retirement plan, register with the state, or participate in the exchange. Instead, the law creates a comparison tool designed to simplify retirement plan selection, particularly for small businesses.

This update applies to non-governmental employers located or operating in Utah with at least one employee. While eligible employers may use the Utah Retirement Plan Exchange, participation is voluntary and the law does not require employers to offer a retirement plan or take any action.

What Employers Should Do

Legal Requirements

• HB 250 does not require employers to offer a retirement plan, register with the state, participate in the Utah Retirement Plan Exchange, or take any other action. Participation is entirely voluntary, and there are no penalties for declining to participate.

Practical Considerations

• Employers that do not currently offer a retirement plan, or are considering changing providers, may wish to evaluate the exchange once it becomes operational as a simplified way to compare retirement plan options.
• Use the exchange’s comparison tools to evaluate automatic-enrollment Individual Retirement Account (IRA) and 401(k) options based on provider fees, plan features, investment options, service models, fiduciary responsibilities, and workforce needs.
• Consider engaging a Professional Employer Organization (PEO), Administrative Services Organization (ASO), retirement-plan consultant, or benefits advisor to evaluate available options and assist with plan administration if a retirement plan is adopted.
• Review educational materials published by the Utah State Treasurer’s Office regarding available retirement plans, provider requirements, and exchange functionality.

Overview

Eligibility and Participation

• Any non-governmental employer located or operating in Utah with at least one employee may use the exchange.
• The Utah State Treasurer’s Office is directed to promote the exchange to small businesses, defined under the law as employers with 50 or fewer employees.
• Participation is voluntary. Employers are not required to offer a retirement plan or use the exchange.

Available Retirement Plans

• The exchange may list only automatic-enrollment IRAs and automatic-enrollment 401(k) plans.
• Employees enrolled in either type of plan may opt out or select a different contribution rate as permitted under the plan.

Exchange Features

• The online portal must present retirement plans in a standardized format.
• Information must include plan features, fees, investment options, performance information, fiduciary responsibilities, and enrollment and withdrawal procedures.
• Employers will be able to compare plans based on factors such as cost, investment lineup, service model, and other plan characteristics.

Provider Oversight

• Retirement plan providers must apply to participate in the exchange and satisfy eligibility requirements established by the Utah State Treasurer’s Office.
• Participating providers must submit annual reports regarding participating employers, employees, assets under administration, account balances, opt-out rates, and material changes to plan structure or fees.
• The Treasurer’s Office may suspend or remove providers that fail to comply with program requirements, provide false or misleading information, charge excessive fees, engage in mismanagement, breach fiduciary duties, or fail to cooperate with oversight efforts.

Why This Matters

The law creates a retirement-plan marketplace without imposing a retirement-plan mandate on employers. For employers considering whether to offer a retirement plan, particularly smaller businesses with limited benefits resources, the exchange may make it easier to compare providers and evaluate plan features. Employers that already sponsor retirement plans may also find the platform useful when benchmarking providers or exploring alternative plan options.

Key Risks for Employers

• Utah does not impose penalties on employers that choose not to participate in the exchange. Participation is entirely voluntary.

• Employers that sponsor a retirement plan, whether selected through the exchange or through another provider, remain responsible for complying with applicable federal retirement-plan requirements, including obligations under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code.

• Employers should carefully evaluate provider fees, administrative services, fiduciary responsibilities, investment options, employee-participation features, and long-term plan suitability before selecting a retirement plan.

• Employers that select a provider that is later suspended or removed from the exchange may need to evaluate alternative providers and manage any resulting administrative transitions.

Additional Information

The Utah State Treasurer’s Office may contract with third-party vendors to operate the exchange. Unlike state-run automatic Individual Retirement Account (auto-IRA) programs adopted in some jurisdictions, Utah’s marketplace model does not require employer participation and preserves employer choice regarding whether to offer a retirement plan and which provider to select.

Source References

• Utah HB 250 – Utah Retirement Plan Exchange

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