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To help provide more opportunities for small businesses, various states have introduced, passed, and enacted legislation for both voluntary and mandated state run Individual Retirement Account (IRA) programs for employers to provide to their employees.
What is a State Retirement Program?
A state retirement program is a state facilitated retirement option that employers can take advantage of if they are not currently offering a retirement benefit to their employees.
Who is eligible to participate in State Retirement Programs?
Employer:
Generally speaking, companies who do not currently offer a retirement benefit to their employees are eligible to participate in the state sponsored retirement plan. Some states do have additional eligibility requirements such as company size and/or how long the company has been operating. For more information on a specific state’s eligibility requirements visit the state retirement program website linked below.
Employee:
Generally speaking, employees must have earned wages in a given state to be eligible to enroll in the state’s retirement program. Some states do have additional eligibility requirements such as age, minimum earned wages, and/or employment type. For more information on a specific state’s eligibility requirements visit the state retirement program website linked below.
Am I required to participate in a State Retirement Program?
While you are not required to offer your employees retirement benefits through your company, some states may require you to enroll in state programs or submit an exemption based on your company’s eligibility. Some states with mandated state retirement programs also have enrollment deadlines and/or fees/penalties that may apply if the necessary action is not taken. To check if a state requires participation and for further details on applicable deadlines and potential penalties, visit the state website linked below.
What if I offer my employees 401(k) benefits via Slavic401k or another provider?
If you already offer 401(k) benefits to your employees you are not required to participate in state retirement programs. However, you may still need to certify your company’s exemption with the state directly. Whether you currently offer a retirement plan to your employees or not, Justworks will notify you prior to an applicable deadline if there is any action required.
Which states offer a State Retirement Program?
See below for a list of states currently offering a retirement program as well as upcoming state retirement legislation. For more information visit the state resources linked below.
| State | Resource |
| California | CalSavers |
| Colorado | Colorado SecureSavings |
| Connecticut | MyCTSavings |
| Delaware | Delaware EARNS |
| Illinois | Illinois Secure Choice |
| Maine | Maine Retirement Savings Program |
| Maryland | MarylandSaves |
| Massachusetts (Voluntary) | Massachusetts CORE Plan |
| New Hampshire (Voluntary) | New Hampshire Retirement System |
| New Jersey | RetireReady NJ |
| Oregon | OregonSaves |
| Vermont | Vermont Saves |
| Virginia | RetirePath Virginia |
| Washington (Voluntary) | Retirement Marketplace |
Upcoming State Retirement Legislation
| State | Retirement Legislation |
| Hawaii | Hawaii Retirement Savings Program |
| Minnesota | Minnesota Secure Choice Retirement Program |
| Missouri (Voluntary) | Show-Me MyRetirement Savings Administrative Fund |
| Nevada | Nevada Employee Savings Trust Program |
| New Mexico (Voluntary) | New Mexico Work and Save Act |
| New York | New York Secure Choice Savings Plan |
| Rhode Island | Rhode Island Secure Choice Retirement Savings Program |
| Washington | Washington Saves Program (launch date by July 1, 2027) |
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.