Add the Pine Tree state to the growing list of states offering the program to ensure coverage of those whose employers do not offer the plan.
Governor Janet Mills (D) signed Law on the Promotion of Individual Pension Savings through Public-Private Partnerships (LD 1622) to the June 24 Act. The law,, introduced by Senator Eloise Vitelli (D-Sagadahoc), passed by the House of Representatives and the Senate of Maine on June 17.
The measure requires each covered employer to allow its covering employees to decide whether or not to contribute to the deduction of the Roth IRA payroll by automatic enrollment, but with the option to unsubscribe. Covered employees who check out will automatically log back in at regular intervals, but will have the opportunity to log out again. The Maine Pension Savings Board could expand the options available to employees by also allowing them to contribute to the traditional IRA.
Employees who are covered will automatically initially contribute 5% of their salary or wages and may choose to contribute at a higher or lower rate. The law also provides for an annual increase in the contribution rate by a maximum of 1% of salaries or salaries to a maximum of 8%. Employer contributions are not allowed.
The law also allows certain non-employees, such as the self-employed and independent contractors, to participate in the program.
The laws will be phased in over a 12-month period beginning in April 2023:
- April 1, 2023: a covered employer with 25 or more employees must offer them a program;
- October 1, 2023: a covered employer with 15 to 24 employees must offer them a program; i
- April 1, 2024: A covered employer with 5 to 14 employees must offer them a program.
Visit our state resource center for the IRA plan!!
Maine Pension Savings Board
The bill establishes a new Pension Savings Committee in the state of Maine that will develop, implement and lead the program. In addition, the board will:
- conduct market, legal and feasibility analyzes if deemed appropriate by the Board;
- adopt rules that the committee deems necessary or advisable for the implementation and general administration and operation of the program;
- make funds hold and invest and reinvest within the program; i
- develop and implement an investment policy that defines the objectives of investing in the program in accordance with the objectives of the program and that provides policies and procedures in accordance with those investment objectives.
The beginning of summer
So far, 2021 has proven to be active in terms of new state auto-IRA programs:
- In Virginia, the laws that create the VirginiaSaves program await the signature of Governor Ralph Northam (D);
- In Delaware, legislation creating a program to expand access to retirement and necessary savings (EARNS) awaits the General Assembly;
- New York City adopted in May the mandatory program “Security for pensions for all”;
- An extension of the Illinois Secure Choice program awaiting the signature of Governor JB Pritzker (D); i
- In State of New York, laws binding the state’s voluntary auto-IRA program await the signature of Governor Mario Cuomo (D).