As of August 2024, more than 30 states have proposed legislation to create a state-mandated retirement plan. Currently, there are 17 states with laws that create state-sponsored retirement plans. Many of these plans have mandates and your company may be required to participate.
INVO has compiled a list of states with mandatory plans. We can help you in complying with the mandates in your state. It is important to note that many times these state plans lack flexibility and investment options. Our team will be happy to talk to you about your options.
Many Americans are not saving enough for retirement–in fact, a recent survey by the Federal Reserve found that a quarter of working adults have no retirement savings at all. To address this growing crisis, a number of states are enacting laws that require private businesses to provide employee retirement plans. The requirement comes with the option to enroll in a state-sponsored program, which provides a low-cost way for small businesses to offer a retirement plan. You do not need to enroll in a state-sponsored option if your business already offers an employee retirement plan–as long as the plan meets your state’s requirements. However, you might be subject to penalties if your business does not offer a retirement program and your state has a mandate for which you qualify.
States with mandatory retirement plan requirements, or have plans underway (as of August 2023).
California
CalSavers
Current registration started on January 1, 2023.
Enrollment deadlines:
- December 31, 2023 | 5 or more employees
- December 31, 2025 | 1 to 4 employees
Colorado
Colorado Secure Savings Program
Enrollment deadlines:
- March 15, 2023 | 50-plus employees
- May 15, 2023 | 15 to 49 employees
- June 30, 2023 | 5 to 14 employees
Connecticut
MyCTSavings
Enrollment deadlines:
- June 30, 2022 | 100 or more employees
- October 31, 2022 | 26 to 99 employees
- March 30, 2023 | 5 to 25 employees
Important timelines:
- Starting July 2023 | Newly eligible businesses should expect to receive notifications to take action because they added employees and are now above the 5 employee threshold or because business started before October 1 of last year.
- Starting August 2023 | Businesses that were previously notified will receive a final reminder to register or certify their exemption.
Delaware
DE Earns
More than 5 employees (Program Implementation to be scheduled by January 1, 2025)
Hawaii
Hawaii Retirement Savings Program (Details Pending)
Illinois
Illinois Secure Choice
Enrollment deadlines:
- ASAP: 16 or more employees (deadline passed, registration as soon as possible)
- November 1, 2023 | 5 to 15 employees
Maine
Signed into law, scheduled. Any covered employer may voluntarily offer the program after April 1, 2023.
Enrollment beginning in 2023 with the following proposed dates:
- April 1, 2023 | 25 or more employees
- October 1, 2023 | 15 to 24 employees
- April 1, 2024 | 5 to 14 employees
Maryland
Maryland Small Business Retirement Savings Program
Enrollment deadlines:
- ASAP: One or more employees
- Employers who sign up by December 1, can save $300 of the annual registration fee beginning in 2023, and every year after.
Massachusetts
Massachusetts Defined Contribution CORE Plan
- Currently only enacted for the state’s nonprofit sector.
- The Massachusetts Defined Contribution CORE Plan (CORE Plan) is a 401(k) plan, which also provides a Roth 401(k) option.
- All common-law employees of a participating employer are eligible to participate in the CORE Plan. Unless they elect otherwise, they will be automatically enrolled in the Plan no sooner than 60 days after receiving the CORE Plan’s autoenrollment notice. A CORE Plan account can be activated as soon as the participating employer receives its enrollment notification letter, without a 60-day waiting period.
- Opt-out is available either online or by calling a participant services representative at 844-365-CORE (2673).
Minnesota
Minnesota Secure Choice Retirement program (Program Implementation to be scheduled by January 1, 2025)
New Jersey
The New Jersey Secure Choice Savings Program (Details pending)
New Mexico
New Mexico Work and Save Program (Details pending)
New York
(Details Pending–program has not yet been implemented)
Oregon
Oregon Saves
Enrollment Deadlines:
- March 1, 2023 | 3 or more employees
- July 31, 2023 | One to 2 employees
Vermont
VT Saves
- 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
Employer Registration:
- July, 2023 | All eligible employers can register (no penalty announced as of August 9, 2023)
- February 15, 2024 | 25 or more employees
Washington
Washington Small Business Retirement
Enrollment Deadlines:
- ASAP | One to 100 employees
