A recent survey by the Federal Reserve revealed that nearly one-quarter of Americans are not saving for retirement. This concerning trend has caught the attention of legislators nationwide, prompting a wave of new laws aimed at helping more Americans prepare for their golden years. Currently, 17 states have implemented retirement plan mandates, and many others are considering similar legislation.
While the specifics of these laws vary from state to state, they generally require businesses to either offer a private retirement plan or enroll employees in a state-sponsored option. Importantly, compliance is often determined not by where the business is registered, but by the location of the employee. Additionally, the number of employees a business has can influence its obligations under these laws. Failure to comply can result in penalties and fines.
If you’re looking for a plan to comply with your states mandate An XcelHR 401K MEP plan might be the right fit. XcelHR’s 401k MEP plan gives you access to retirement benefits that offer peace of mind for now, and security for later. We handle the administering work freeing up your time and energy and tend to cost much less than traditional 401K plans. Schedule a meeting to learn more.
States with mandatory retirement plan requirements, or have plans underway
California
CalSavers – www.calsavers.com
Colorado
Colorado Secure Savings Program – www.coloradosecuresavings.com
Connecticut
MyCTSavings – www.myctsavings.com
Delaware
DE Earns – www.news.delaware.gov/2022/08/18/deearns
Program Implementation to be scheduled by January 1, 2025
Hawaii
Hawaii Retirement Savings Program – www.labor.hawaii.gov/blog/hrsp (Details Pending)
Illinois
Illinois Secure Choice – www.ilsecurechoice.com
Maine
Signed into law, scheduled
Maryland
Maryland Small Business Retirement Savings Program – www.marylandsaves.org
Massachusetts
Massachusetts Defined Contribution CORE Plan – www.empower.com/client/mass/employer
Minnesota
Minnesota Secure Choice Retirement program – (Program Implementation to be scheduled by January 1, 2025)
Nevada
(Details Pending)
New Jersey
The New Jersey Secure Choice Savings Program – www.eanj.org/engagement/newsroom/new-jersey-secure-choice-savings-program-what-employers-should-do-now (Details pending)
New Mexico
New Mexico Work and Save Program – www.nmsto.gov/special-programs/work-and-save (Details pending)
New York
(Details Pending – program has not been implemented)
Oregon
Oregon Saves – www.oregonsaves.com
Vermont
VT Saves – www.legislature.vermont.gov
• July 1, 2025 | 25 or more employees
• January 1, 2026 | 15 to 24 more employees
• July 1, 2026 | 5 to 14 employees
Virginia
Retire Path VA – www.retirepathva.com
Washington
Washington Small Business Retirement – www.retirement-marketplace.com