Maine

Maine

Legislative Summary:

In April 2021, Senate Bill LD1622 was introduced by Senator Eloise Vitrelli (D) and was passed by Senate and House in June 2021. The Act was signed by Governor Janet Mills on June 23, 2021.

Program Description:

The Maine Retirement Savings Program is administered by the Maine Retirement Savings Board, to provide a state-facilitated payroll-deduction individual retirement savings plan to private sector employees who do not have access to employer-sponsored retirement savings plans.

Affected Employers:

Employers with more than five (5+) employees, that have been in business for at least two years, and have not offered a retirement plan within the current calendar or two preceding the calendar years. Self-employed individual may participate in the program if they would like as well, but it is not required.

General Requirement:

Automatic enroll employees at 5% deferral with annual increases of 1% (up to a maximum of 8%) of the enrollee’s wages.

Launch Status:

January 1, 2025

Full Implementation:

January 1, 2025

Compliance Deadline:

Deadline AFFECTED EMPLOYERS
April 1, 2023 Employers with 25+ employees
October 1, 2023 Employers with 15+ employees
April 1, 2024 Employers with 5+ employees

Non-Compliance Penalties:

Deadline MAXIMUM PENALTY
July 1, 2025 $20 per employee
July 1, 2026 $50 per employee
July 1, 2027 $100 per employee

Employer Costs:

N/A

Employee Costs:

Undetermined; flat annual admin fee

Investments:

The program is anticipated to offer a suite of target date funds (TDFs), as the default investment option, and additional investment options – including a capital preservation, fixed-income, equity funds.

Program Website:

Maine Retirement Savings Program
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