Heads Up! It’s Time To Implement The Nevada Employee Savings Trust Program
Private employers with at least six employees who do not provide a retirement savings plan or pension are required by Nevada law to register for the Nevada’s Employee Savings Trust Program (“NEST”). This requirement was adopted by the Nevada Legislature in 2023 via Senate Bill 305 and becomes effective on July 1, 2025.
Once a covered employer registers for NEST, it must automatically enroll all adult employees who have been employed for at least 120 days into the new state-administered individual retirement account with a 5% contribution rate. Employees will have the option to adjust their contribution rate or opt-out of the program. Employees can also choose investment options.
The employer is not responsible for managing the plan; it will be managed by NEST’s Board of Trustees. Employers can use payroll providers to process employee contributions but can also add contributions directly to the NEST employer portal.
Employers have the option to choose a different retirement savings plan for their employees, such as one offered by a trade association or chamber of commerce. Additionally, there is an exemption from SB 305 for new employers who have been operating for less than 36 months. Otherwise, all private employers (including non-profits) with 6 or more employees must comply with SB 305.
Registration for NEST is scheduled to start in June, and we are waiting for the Nevada Treasurer to post more information to its website. NEST’s Board of Trustees is required to provide employers with informational materials to distribute to employees explaining NEST. In the meantime, if you have questions about this law, please contact a KZA attorney.
KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.