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Work and Save legislation map

Over 30 states are considering retirement savings plans for small business employees, and twelve states are already implementing them. Learn the facts about plan design and see the variety of policies states are pursuing.

Laws Enacted

CalSavers: California Secure Choice Retirement Savings Program

TYPE: Auto IRA

For Employees

  • Eligibility: Employee of participating employer
  • Automatic Enrollment: Will be clarified once regulations are adopted; opt-out available
  • Access to Funds: Not specified; shall be included in employee information packet
  • Portability: Not dependent upon employment with a specific firm or organization

For Employers

  • Definition of Employer: Employer with 5 or more employees; employer of provider of in-home services
  • Requirement to Offer a Plan: Mandatory; if choose to not participate, must offer a qualified alternative plan
  • Employer Contributions: Not permitted
  • Costs and Responsibilities: No administrative costs or program fees for employers; employers must distribute informational materials to employees, facilitate enrollment, set up payroll deduction, and remit employee contributions
  • Employer Liability: No liability for employee decisions to participate or opt out of program or for investments or administration of the program, and employer has no fiduciary obligations

For States and Taxpayers

  • ERISA: The Board shall develop the Program so as to not subject it to ERISA
  • Budget Implications (Including Startup Costs): $1.9 million appropriated by legislature in 2016 for start-up costs; $15 million appropriated in 2017 for start-up and administrative costs
  • Management and Operations: Overseen by the California Secure Choice Retirement Savings Investment Board
  • State Liability: No duty or liability for payment of benefits or loss
  • Source of Investments: Private sector
  • Investment Options: The Board shall establish investment options, and prepare an annual statement of investment policy
  • Effective Date: Launched on July 1, 2019
  • Bill Text: Retirement savings plans

Colorado Secure Savings Program Board

TYPE: Auto IRA

For Employees

  • Eligibility: Voluntary, opt-out
  • Automatic Enrollment: Yes
  • Access to Funds: Not specified
  • Portability: Not dependent upon employment with a specific firm or organization

For Employers

  • Definition of Employer: Employers with 5 or more employees that have been in business at least two years and has not offered a qualified retirement plan in the preceding two years
  • Requirement to Offer a Plan: To be defined
  • Employer Contributions: To be defined
  • Costs and Responsibilities: To be defined
  • Employer Liability: To be defined

For States and Taxpayers

  • ERISA: To be defined
  • Budget Implications (Including Startup Costs): To implement this act, $1,197,552 is appropriated to the Department of the Treasury.
  • Management and Operations: To be defined
  • State Liability: To be defined
  • Source of Investments: To be defined
  • Investment Options: To be defined
  • Effective Date:  Once a new Board is in place on September 15, 2020, the program implementation planning process will begin
  • Bill Text: CO Colorado Secure Savings Program

 Connecticut Retirement Security Program

Type: Auto IRA

For Employees

·         Eligibility: Employee of participating employer

·         Automatic Enrollment: Yes: opt-out available

·         Access to Funds: Not specified

·         Portability: Not dependent upon employment with a specific firm or organization

For Employers

·         Definition of Employer: Business with five or more employees not currently offering a retirement plan

·         Requirement to Offer a Plan: Mandatory

·         Employer Contributions: Not permitted

·         Costs and Responsibilities: Not specified

·         Employer Liability: Not specified

For States and Taxpayers

·         ERISA: Not covered by ERISA

·         Budget Implications (Including Startup Costs): Funds may be borrowed by the Connecticut Retirement Security Authority, and may be repaid only by the revenue of the Authority.

·         Management and Operations: Administered by the Connecticut Retirement Security Authority

·         State Liability: Not liable for the payment of any benefit to any participant or beneficiary of any participant, and not liable for any liability or obligation of the Authority

·         Source of Investments: Private sector

·         Investment Options: Not specified

·         Effective Date: To be determined

Bill Text: AN ACT CREATING THE CONNECTICUT RETIREMENT SECURITY PROGRAM

TYPE: Auto IRA

For Employees

  • Eligibility: Employee of participating employer
  • Automatic Enrollment: Yes; opt-out available
  • Access to Funds: Not specified; shall be included in employee information packet
  • Portability: Not dependent upon employment with a specific firm or organization

For Employers

  • Definition of Employer: Business with 25 or more employees that has been in business for at least two years and that does not offer a qualified alternative plan
  • Requirement to Offer a Plan: Mandatory; if choose to not participate, must offer a qualified alternative plan
  • Employer Contributions: Not permitted
  • Costs and Responsibilities: No administrative costs or program fees for employers; employers must distribute informational materials to employees, facilitate enrollment, set up payroll deduction, and remit employee contributions
  • Employer Liability: No liability for employee decisions to participate or opt out of program or for investments, and employer has no fiduciary obligations 

For States and Taxpayers

  • ERISA: The Board shall request an opinion from the entity with jurisdiction regarding applicability of ERISA to the program
  • Budget Implications (Including Startup Costs): $2.1 million appropriated by legislature for fiscal year 2017 start-up costs; $250,000 appropriated from the Tax Compliance and Administration Fund for refunds associated with the Act
  • Management and Operations: Overseen by the Illinois Secure Choice Savings Board
  • State Liability: No duty or liability for payment of benefits or loss
  • Source of Investments: Private sector
  • Investment Options: The Board shall establish investment options, and prepare an annual statement of investment policy
  • Effective Date: The program began with a phase one pilot program in May 2018 and statewide enrollment rolled out in waves through November 2019.

Bill Text: The Illinois Secure Choice

Maryland Small Business Retirement Savings Program

Type: Auto IRA

For Employees

  • Eligibility: Employee of participating employer
  • Automatic Enrollment: Yes; opt-out available
  • Access to Funds: Not specified
  • Portability: Not dependent upon employment with a specific firm or organization

For Employers

  • Definition of Employer: Business that pays employees through a payroll system or service and does not currently offer a retirement savings option to its employees
  • Requirement to Offer a Plan: Mandatory
  • Employer Contributions: Not permitted
  • Costs and Responsibilities: Not specified
  • Employer Liability: No fiduciary liability or obligation

For States and Taxpayers

  • ERISA: Not covered by ERISA
  • Budget Implications (Including Startup Costs): The Maryland Small Business Retirement Savings Board, consistent with its fiduciary duties, may enter into an agreement to borrow funds from the state or any other entity to provide funding for the operation of the program until the program can generate sufficient funding for operations through fees assessed on program accounts.
  • Management and Operations: Administered by the Maryland Small Business Retirement Savings Board
  • State Liability: The Board my not offer any investment options that could result in liability to the state or its taxpayers
  • Source of Investments: Not specified
  • Investment Options: Not specified
  • Effective Date: Implemented early 2019
  • Bill Text: Maryland Small Business Retirement Savings Program and Trust

 

Massachusetts Defined Contribution CORE Plan

TYPE: Multiple Employer Plan

For Employees

  • Eligibility: Employee of participating employer
  • Automatic Enrollment: Permitted, but not required
  • Access to Funds: Not specified
  • Portability: Not specified

For Employers

  • Definition of Employer: Nonprofit employers with 20 or fewer employees
  • Requirement to Offer a Plan: Voluntary
  • Employer Contributions: Permitted
  • Costs and Responsibilities: Not specified
  • Employer Liability: Not specified

For States and Taxpayers

  • ERISA: Covered by ERISA
  • Budget Implications (Including Startup Costs): Not specified
  • Management and Operations: Overseen by the Office of the State Treasurer
  • State Liability: Not specified
  • Source of Investments: Not specified
  • Investment Options: The treasurer may contract with practitioners, administrators, investment managers and other entities, including the pension reserves investment management board, in order to design, administer and provide investment options under the plan
  • Effective Date: Launched October 2017

Bill Text: “Core” Plan

 

 

TYPE: Auto IRA

For Employees

  • Eligibility: Employee of participating employer
  • Automatic Enrollment: No
  • Access to Funds: Not specified
  • Portability: Not specified

For Employers

  • Definition of Employer: A person, firm, corporation, partnership, or sole proprietor, or any other employer that is actively engaged in business with fewer than 25 qualified employees at the time of enrollment, and a majority of which employees are employed in New Jersey.
  • Requirement to Offer a Plan: No
  • Employer Contributions: Depends on selected plan
  • Costs and Responsibilities: Not specified
  • Employer Liability: Not specified

For States and Taxpayers

  • ERISA: Depends on selected plan
  • Budget Implications (Including Startup Costs): Not specified
  • Management and Operations: New Jersey Department of the Treasury
  • State Liability: The state is not to be exposed to any liability
  • Source of Investments: Not specified
  • Investment Options: Depends on selected plan
  • Effective Date: Launched 2019
  • Bill Text: New Jersey Secure Choice Savings Board

New Mexico Work and Save Board

Type: “Hybrid” – Voluntary Marketplace/Auto-enroll payroll deduction Roth IRA

For Employees

  • Eligibility: Employee of participating employer
  • Automatic Enrollment: Yes, for eligible products in the Marketplace. Employers that choose to voluntarily participate in the New Mexico Work and Save program may automatically enroll its employees, if permitted by federal law; opt-out available
  • Access to Funds: To be determined
  • Portability: To be determined

For Employers

  • Definition of Employer: All qualifying employers engaged in a business, industry, profession, trade, or other enterprise with its primary place of business physically located in New Mexico. If necessary, the executive director shall determine the eligibility of an employer or employee to participate in New Mexico Work and Save.
  • Requirement to Offer a Plan: Mandatory; if choose to not participate, must offer a qualified alternative plan
  • Employer Contributions: Not permitted
  • Costs and Responsibilities: Administrative costs paid for by fees of approximately 1% of total assets per year
  • Employer Liability: Not specified

For States and Taxpayers

  • ERISA: To be determined
  • Budget Implications (Including Startup Costs): The Board shall ensure that New Mexico Work and Save is self-sustaining no later than five years after the date that it is fully implemented
  • Management and Operations: Overseen by the New Mexico State Treasurer’s Office
  • State Liability: Not specified
  • Source of Investments: To be determined
  • Investment Options: To be determined
  • Effective Date: The State Treasurer’s Office has until July 1, 2021, to begin the Retirement Savings Plan Marketplace, and until January 1, 2022, to begin the Work and Save program.
  • Bill Text: New Mexico Saves Act

New York State Secure Choice Savings Program

Type: Payroll Deduction Roth IRA

For Employees

  • Eligibility: Any Individual who is eighteen years of age or older who is employed by an employer, and who earned wages working for an employer in New York state during a calendar year
  • Automatic Enrollment: Voluntary; opt-out
  • Access to Funds: Not specified
  • Portability: Not dependent upon employment with a specific firm or organization

For Employers

  • Definition of Employer: Any employer who does not currently offer a retirement plan and has not offered a qualified plan in the last two years
  • Requirement to Offer a Plan: Voluntary
  • Employer Contributions: Not permitted
  • Costs and Responsibilities: Not specified
  • Employer Liability: Participating employers shall have no liability for an employee's decision to participate or not participate in the program, or for the decisions of the board or of any enrollee

For States and Taxpayers

  • ERISA: Not covered by ERISA
  • Budget Implications (Including Startup Costs): A total of $4 million was appropriated to the Administrative Fund for services and expenses related to the administration of the program.
  • Management and Operations: To be overseen by the New York Secure Choice Savings Program
  • State Liability: The state shall have no liability for the payment of any benefit to any enrollee in the program
  • Source of Investments: Not specified
  • Investment Options: The New York Secure Choice Savings Program Board shall determine which investment options are available, including which is the default option
  • Effective Date: The program shall be implemented, and enrollment of employees shall begin, within 24 month after April 12, 2018, the effective date of the law.
  • Bill Text: A09505

OregonSaves

Type: Auto IRA

For Employees

  • Eligibility: Employee of participating employer
  • Automatic Enrollment: Yes; opt-out available
  • Access to Funds: Distribution of funds may be requested by submitting a completed distribution request to the Program Administrator
  • Portability: Not dependent upon employment with a specific firm or organization

For Employers

  • Definition of Employer: Business with 1 or more employee in 18 weeks of a calendar year or where the payroll amounts to $1,000 or more, not currently offering a retirement plan
  • Requirement to Offer a Plan: Mandatory; if choose to not participate, must offer a qualified alternative plan
  • Employer Contributions: Not permitted
  • Costs and Responsibilities: Administrative costs paid for by fees of approximately 1% of total assets per year
  • Employer Liability: Not specified

For States and Taxpayers

  • ERISA: Not covered by ERISA
  • Budget Implications (Including Startup Costs): $250,000 appropriated by legislature for outreach and technical assistance; $743,541 appropriated for operating expenses
  • Management and Operations: Overseen by the Oregon Retirement Savings Board; Ascensus serves as the program's administrator
  • State Liability: Not specified
  • Source of Investments: Private sector
  • Investment Options: The Oregon Retirement Savings Board determines which investment options are available; options will be made available to participants online or by phone
  • Effective Date: Pilot launched July 1, 2017; Waves 1 through 5: An employer employing 100 or more employees to an employer employing 5 to 9 employees November 18, 2019. Wave 6: An employer employing 4 or fewer employees: January 15, 2021
  • Bill Text: Oregon Retirement Savings

Vermont Green Mountain Secure Retirement Plan

Type: Multiple Employer Plan

For Employees

  • Eligibility: Employee of participating employer
  • Automatic Enrollment: Yes; opt-out available
  • Access to Funds: Not specified
  • Portability: Not dependent upon employment with a specific firm or organization

For Employers

  • Definition of Employer: Business with 50 employees or fewer not currently offering a retirement plan; self-employed individuals
  • Requirement to Offer a Plan: Voluntary
  • Employer Contributions: Future voluntary contributions permitted
  • Costs and Responsibilities: Not specified
  • Employer Liability: Not specified

For States and Taxpayers

  • ERISA: Covered by ERISA
  • Budget Implications (Including Startup Costs): Not specified
  • Management and Operations: Administered by a board to be determined by the Public Retirement Study Committee
  • State Liability: Not specified
  • Source of Investments: Private sector
  • Investment Options: Not specified
  • Effective Date: To be implemented by late 2020
  • Bill text: Act 69 concerning the Green Mountain Secure Retirement Plan

Washington's Small Business Retirement Marketplace

Type: Marketplace

For Employees

  • Eligibility: Employee of participating employer
  • Automatic Enrollment: Depends on selected plan; opt-our available if automatic enrollment selected
  • Access to Funds: Not specified
  • Portability: Not specified

For Employers

  • Definition of Employer: Business with 100 employees or fewer; self-employed individuals; sole proprietors
  • Requirement to Offer a Plan: Voluntary
  • Employer Contributions: Depends on selected plan
  • Costs and Responsibilities: Depends on selected plan
  • Employer Liability: Not specified

For States and Taxpayers

  • ERISA: Depends on selected plan
  • Budget Implications (Including Startup Costs): $524,000 appropriated for two-year budget cycle, and Director may use private funding and/or accept grants to cover marketplace expenses
  • Management and Operations: Operated by the Washington State Department of Commerce
  • State Liability: State is not to be exposed to an potential liability, and no state-based retirement plan for businesses or individuals who are not employed by the state of Washington may be offered
  • Source of Investments: Private sector
  • Investment Options: Depends on plan selected from marketplace
  • Effective Date:  The Department of Commerce launched the marketplace on March 19, 2018.
  • Bill Text: WASHINGTON SMALL BUSINESS RETIREMENT MARKETPLACE

Legislative proposal and/or study in 2020

Iowa Savings Plan Trust (H.F. 94) Introduced 2019

Missouri Secure Choice Savings Program Act (HB 1432); Introduced 2019; Referred to High Education Committee 2020