Maryland is the latest state to approve a state-run retirement plan for workers not offered a 401(k) at their private sector jobs. The bill cleared the Maryland General Assembly as lawmakers raced to approve over 100 pieces of legislation before the latest 90-day session ended Monday at midnight.
The retirement savings plan is similar to a 401(k) or IRA and will be created for private-sector employees without access to a workplace savings program with their employer. Employees will be able to make contributions.
“The legislation is the product of stakeholder deliberations that have been taking place in Maryland over the course of the past few years,” NAPA writes in a review of the legislation. “In 2014, then-Gov. Martin O’Malley (D) created the Task Force to Ensure Retirement Security for All Marylanders. The task force, chaired by former Lt. Gov. Kathleen Kennedy Townsend, issued a report in February 2015 that amounted to a call for state action to address the retirement plan coverage gap in the private workforce, but was light on specifics.”
That changed in September 2015, when the leaders of the Maryland General Assembly created the Commission on Maryland Retirement Security & Savings to drill down on the real reasons small businesses were not offering retirement plans for their workers.
The result was the current bill, which now goes to Gov. Larry Hogan’s (R) desk for his signature.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
