State Retirement Program Mandates: What States Have Them and When Do They Take Effect?
State Retirement Program Mandates: What States Have Them and When Do They Take Effect?
Last Updated: July 22, 2024
The following states have enacted retirement savings programs to help individuals save for retirement. Program mandates, structure, and roll-outs vary, so it's essential to understand how these developments may apply to you. Select your state to see the program status and details—or browse them all below.
California
Name: CalSavers
Type: Auto-IRA
Mandate: California employers who do not offer a qualified, employer-sponsored retirement plan and have 1+ employee(s) over 18 years of age must offer a plan.
Timing: The registration deadline for employers with 1-4 employees is December 31, 2025.
Penalties/Credits: The penalties for noncompliance are $250 per eligible employee after 90 days and an additional fee of $500 per eligible employee after 180 days.
Colorado
Name: Colorado SecureSavings Program
Type: Auto-IRA
Mandate: Colorado employers that have been in business for 2+ years with 5+ employees that don’t offer a qualified, employer-sponsored retirement plan must offer a plan.
Timing: The registration deadlines for all businesses with 5+ employees have passed.
Penalties/Credits: Eligible employers must offer a plan or face a fine of up to $100 per eligible employee per year (up to a max of $5,000 annually).
Connecticut
Name: MyCTSavings
Type: Auto-IRA
Mandate: Connecticut businesses that employed five or more employees who were paid $5k or more on October 1st of the previous calendar year must offer a plan unless the business already offers a qualified, employer-sponsored retirement plan.
Timing: The registration deadlines for all businesses with 5+ employees have passed.
Penalties/Credits: Non-compliance may result in an investigation and penalties.
Delaware
Name: Delaware EARNS
Type: Auto-IRA
Mandate: Delaware businesses established before 7/1 of the previous calendar year with 5+ employees must offer a plan unless the business already offers a qualified, employer-sponsored retirement plan.
Timing: The deadline for employers with 5 or more employees is October 15, 2024.
Penalties/Credits: Eligible employers must offer a plan or face a penalty of $250 per eligible employee per year (up to a max of $5,000 annually).
Hawaii
Name: Hawaii Retirement Savings Program
Type: IRA
Mandate: Businesses that have 1+ individuals in employment are required to notify their employees about the program and, if employees choose to opt into the program, must then facilitate contributions.
Timing: The Hawaii Retirement Savings Program has not yet launched, so a registration deadline has yet to be determined.
Penalties/Credits: After its launch, businesses that fail to comply with the program may face penalties of up to $5,000 per year.
Program details and penalties are subject to change as the program is not yet operational.
Illinois
Name: Illinois Secure Choice Retirement Program
Type: Auto-IRA
Mandate: Illinois businesses with 5+ employees in every quarter of the previous year that have been in operation for 2+ years and do not offer a qualified, employer-sponsored retirement plan must offer a plan.
Timing: The registration deadline has passed for employers with 5+ employees.
Penalties/Credits: Employers may face a fine of $250 per employee for the first calendar year the employer is non-compliant and 500 per employee for each subsequent calendar year the employer is non-compliant.
Maine
Name: Maine Retirement Investment Trust (MERIT)
Type: Auto-IRA
Mandate: Maine employers with 5+ employees that have been in business 2+ years and have not offered a qualified, employer-sponsored retirement plan at any time in the past 2 calendar years must offer a plan.
Timing: The deadline for employers with 5+ employees passed on June 30, 2024.
Penalties/Credits: Penalties for employer non-compliance begin July 2025.
Maryland
Name: MarylandSaves
Type: Auto-IRA
Mandate: Maryland employers with 1+ employee(s) and automatic payroll processing that have been in business for 2+ years and do not offer a qualified, employer-sponsored retirement plan must offer a plan.
Timing: The program became available on September 15, 2022. Deadlines are still forthcoming.
Penalties/Credits: Every year that a business is enrolled, the Maryland Department of Assessment and Taxation will waive its $300 annual report filing fee.
Massachusetts
Name: CORE Plan
Type: Multiple Employer Plan (MEP)
Mandate: Voluntary. Massachusetts-based nonprofit organizations with 20 or fewer employees may participate.
Timing: The CORE plan launched in October 2017 and is currently open for employer registration and employee enrollment.
Penalties/Credits: N/A
Minnesota
Name: Secure Choice Retirement Program
Type: Auto-IRA
Mandate: Mandatory for employers with 5+ employees that have been in business for 1+ year(s) and do not already offer a qualified, employer-sponsored retirement plan.
Timing: The Minnesota Secure Choice Retirement Program is expected to launch after January 2025.
Penalties/Credits: Once the program launches, non-compliance may result in penalties.
Program details and penalties are subject to change as the program is not yet operational.
Missouri
Name: Missouri Workplace Retirement Savings Plan
Type: Multiple Employer Plan (MEP)
Mandate: Voluntary.
Timing: The plan is set to begin September 1, 2024.
Penalties/Credits: N/A
Program details are subject to change as the program is not yet operational.
Nevada
Name: Nevada Employee Savings Trust
Type: Auto-IRA
Mandate: Mandatory for employers with 5+ employee(s) that have been in business for at least 36 months and have not offered a qualified, employer-sponsored retirement plan in the three years immediately before the plan's start date.
Timing: The Nevada Employee Savings Trust program is expected to launch on July 1, 2025.
Penalties/Credits: To be determined.
Program details and penalties are subject to change as the program is not yet operational.
New Jersey
Name: RetireReady NJ
Type: Auto-IRA
Mandate: New Jersey businesses with 25+ employees (including leased employees) that have been in business 2+ years and do not offer a qualified, employer-sponsored retirement plan must offer a plan.
Timing: Companies with 40+ employees must register or submit an exemption by September 15, 2024. Companies with 25-39 employees must register or submit an exemption by November 15, 2024.
Penalties/Credits: Employers that don’t offer a plan within 1 year will receive a written warning from the government. Each subsequent year of non-compliance will result in the following penalties:
- Second calendar year with a violation: $100 fine
- Third or fourth calendar year with a violation: $250 for each violation
- Fifth and subsequent years with a violation: $500 for each violation
New Mexico
Name: New Mexico Work and Save Program
Type: Roth IRA
Mandate: Voluntary. Companies with their primary place of business located in New Mexico may be eligible.
Timing: The New Mexico Work and Save program was expected to launch on July 1, 2024.
Penalties/Credits: N/A
New York
Name: New York State Secure Choice Savings Program
Type: Auto-IRA
Mandate: New York employers with 10+ employees who have been in business for 2+ years and have not offered a qualified, employer-sponsored retirement plan in that time are required to enroll their employees in a plan.
Timing: The program is under development, and there is no registration requirement at this time.
Penalties/Credits: Non-compliance may result in an investigation and penalties.
Program details and penalties are subject to change as the program is not yet operational.
Oregon
Name: OregonSaves
Type: Auto-IRA
Mandate: Oregon employers of all sizes who don’t already offer a workplace retirement plan must complete registration or certify exemption before their required deadline.
Timing: OregonSaves is live and mandatory for all businesses with 1+ employees.
Penalties/Credits: Eligible employers must offer a plan or face a fine of up to $100 per eligible employee per year (up to a max of $5,000 annually).
Rhode Island
Name: Rhode Island Secure Choice Retirement Savings Program
Type: Auto-IRA
Mandate: Employers with 5+ employees who do not offer a qualified, employer-sponsored retirement plan will be required to offer a plan.
Timing: The timeline for employers to enroll employees is as follows:
- Employers with more than 100 employees: within 12 months of the opening of the program
- Employers with more than 50 employees: within 24 months of the opening of the program
- All other employers: within 36 months of the opening of the program
Penalties/Credits: Employers that fail to allow eligible employees to participate in the program within 30 days from the date the notice of penalty was issued my face a $250 penalty per eligible employee.
Program details and penalties are subject to change as the program is not yet operational.
Vermont
Name: VTSaves
Type: Auto-IRA
Mandate: Employers with 5+ employees who do not offer a qualified, employer-sponsored retirement plan will be required to offer a plan.
Timing: The VT Saves program is expected to launch in 2025.
Penalties/Credits: After its launch, businesses that fail to comply with the program may face penalties. Fines for failing to enroll an eligible employee will reach up to $75.
Program details and penalties are subject to change as the program is not yet operational.
Virginia
Name: RetirePathVA
Type: Auto-IRA
Mandate: Mandatory for companies with 25+ employees that have been in business for 2+ years and do not already offer a qualified, employer-sponsored retirement plan.
Timing: The registration deadlines for all businesses with 25+ employees have passed.
Penalties/Credits: Eligible employers who fail to respond before the registration deadline may face an annual penalty of up to $200 per eligible employee.
Washington
Name: Small Business Retirement Marketplace (run by the Washington State Department of Commerce)
Type: Voluntary Marketplace
Mandate: Voluntary.
Timing: Already live.
Penalties/Credits: N/A
Pending State Mandates
Additionally, Arizona, Arkansas, Idaho, Indiana, Iowa, Kentucky, Louisiana, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Tennessee, Utah, West Virginia, Wisconsin, and Wyoming have all introduced legislation but no word yet on when or if they will offer plans.
