How state-mandated retirement plans work

More than 25 states have proposed state-mandated retirement plan legislation, and 10 states have active state-sponsored retirement plans. Find out how these new laws impact your business.

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Retirement plans

Know your state's mandate

Select your state

Select a location to see your state’s retirement legislation. As state-mandated retirement legislation continues to evolve across the country, employers should check with their local representatives for the latest updates.

If you do not see your state listed, it currently has no active program or has not passed retirement mandate legislation. Check back regularly to see if your state has been added.

CalSavers - State of California IRA Program

Status Active program
Website CalSavers Program
Employers impacted

All employers with 5 or more employees.

The registration deadline for employees with 1-4 employees is December 31, 2025.

Plan type Mandatory Roth IRA
Auto-enroll

5% after 30 days

18 or older

Auto-escalation 1% annual increase on enrollment anniversary up to 8%
Investments 2 Funds + State Street Target Date Series
Penalties

1) $250 per eligible employee if noncompliance extends 90 days and

2) $500 per eligible employee if found to be in noncompliance for 180 days

Additional resources CalSavers: California retirement savings plan

Colorado Secure Choice Savings Program

Status Active program
Website Colorado Secure Choice Savings Program
Employers impacted

Employers with five or more employees in business for at least two years.

Opt-in allowed for sole proprietors and smaller businesses.

Plan type Mandatory Roth IRA
Auto-enroll 5% following the employee’s 180th day of employment
Auto-escalation Yes; increase by an additional 1% on each January 1, following the enrolled Employee’s enrollment, up to 8%
Investments 3 Funds + State Street Target Date Series
Penalties $100 per eligible employee per year, not to exceed $5,000 annually
Additional resources Colorado SecureSavings

MyCTSavings Program

Status Active program
Website MyCTSavings Program
Employers impacted Employers with five or more employees, each of whom has been paid more than $5,000 in the calendar year.
Plan type Mandatory Roth IRA
Auto-enroll

3% after 120 days for employee

19 or older

Auto-escalation N/A
Investments

8 Funds + Vanguard Target Date Series

MyCTSavings | Investments

Penalties TBD
Additional resources Connecticut Retirement Security Program

Delaware EARNS Program

Status Active Program
Website Delaware EARNS Program
Employers impacted Employers with five or more employees in business for at least six months of the preceding calendar year.
Plan type Mandatory Roth IRA
Auto-enroll 5% after earning income from a Delaware employer for at least 120 days.
18 or older
Auto-escalation 1% every January until 10%
Investments 3 Funds + State Street Target Date Series
Penalties $250 per employee per year, up to a maximum total penalty of $5,000 per year.

Hawaii Saves Retirement Savings Program

Status Legislation passed; implementation TBD.
Website Hawaii Saves Retirement Savings Program
Employers impacted Employers with one or more employees
Plan type Mandatory Roth IRA
Auto-enroll 3%
Auto-escalation No
Investments TBD
Penalties TBD
Other features $500 state match for the first 50,000 participants to contribute to the plan for 12 consecutive months

Illinois Secure Choice Savings Program

Status Active program
Website Illinois Secure Choice Savings Program
Employers impacted

All employers with five or more employees in business for at least two years.

Staggered deadlines for registration based on employer size.

Plan type Mandatory Roth IRA
Auto-enroll

5% after 60 days for employee

18 or older

Auto-escalation 1% annual increase on enrollment anniversary up to 10%
Investments 3 funds + BlackRock Target Date Series
Penalties

(1) $250 per employee for the first calendar year and

(2) $500 per employee for each subsequent calendar year the employer is non-compliant

Noncompliance does not need to be consecutive to qualify for the $500 penalty

Additional resources Illinois Secure Choice Retirement Savings Program

Maine Retirement Investment Trust

Status Active Program
Website Maine Retirement Investment Trust
Employers impacted All private sector employers with 5 or more employees in business 2 years or more.
Plan type Mandatory Roth IRA
Auto-enroll Yes - 5%
Auto-escalation 1% annual increase on enrollment anniversary up to 10%
Investments 3 Funds + BlackRock Target Date Series
Penalties July 1, 2025 - June 30, 2026 the maximum penalty for non-compliance is $20 per employee.
July 1, 2026 - June 30, 2027, the maximum penalty per employee will be $50.
On or after July 1, 2027, the maximum penalty per employee increases to $100.
Other features Plan available to self-employed individuals and contractors.

Maryland$aves Secure Choice Program

Status Active program
Website Maryland$aves Secure Choice Program
Employers impacted Businesses with at least one W-2 employee, have been in business for two years and use an automated payroll system.
Plan type Roth IRA
Auto-enroll 5%
Auto-escalation 1% annual increase each January, up to 10%
Investments 3 Funds + BlackRock Target Date Series
Penalties None
Other features $300 annual registration fee waived for sponsoring a plan OR participating in the Maryland$aves program. The first $1,000 is invested in an Emergency Savings Fund.
Additional resources MarylandSaves

Massachusetts Defined Contribution CORE Plan

Status Active program4
Website Massachusetts Defined Contribution CORE Plan
Employers impacted

Voluntary for non-profit organizations with 20 or fewer employees

Outstanding legislation to expand to all employers

Plan type Voluntary MEP with safe harbor option
Auto-enroll 6% after 60 days
Auto-escalation Annual increases of 1% or 2% (based on employer’s election) up to a maximum contribution rate of 15%.
Investments Empower/Great West
Penalties N/A - voluntary
Additional resources

FAQ: Massachusetts Core Plan

New Pending Legislation: Massachusetts Secure Choice Retirement Savings Plan

Minnesota Secure Choice Retirement Program

Status Legislation passed; implementation TBD.
Website Minnesota Secure Choice Retirement Program
Employers impacted Employers with five or more employees in business for the immediately preceding 12 months.
Plan type Mandatory IRA
Auto-enroll Yes - TBD
Auto-escalation No
Investments TBD
Penalties TBD
Other features TBD

RetireReady New Jersey Savings Program

Status Active Program
Website RetireReady New Jersey Savings Program
Employers impacted Employers with 25 or more employees in business for two years or more.
Plan type Mandatory Auto IRA
Auto-enroll 3%
18 or older
Auto-escalation No
Investments 7 Funds + Vanguard Target Date Series
Penalties 1st calendar year with a violation: Written warning
2nd calendar year with a violation: $100 fine
3rd-4th calendar year: $250 for each violation
3rd-4th calendar year: $250 for each violation
5th and subsequent years with a violation: $500 for each violation
Additional resources RetireReady New Jersey savings program

New Mexico Work & $ave

Status Legislation passed; target implementation date is July 1, 2024.
Website New Mexico Work & $ave
Employers impacted

Employers with five or more employees in business for at least two years.

Opt-In allowed for sole proprietors and smaller businesses.

Plan type

Marketplace – Voluntary

Work & Save Program – Voluntary Roth IRA

Auto-enroll 6% after 60 days after program enrollment
Auto-escalation TBD
Investments TBD
Penalties TBD
Other features Emergency savings TBD

Nevada Employee Savings Trust

Status Legislation passed; schedule TBD.
Website Nevada Employee Savings Trust
Employers impacted Employers with more than five employees who have been in business for at least 36 months.
Plan type Mandatory Auto IRA
Auto-enroll Yes - % TBD
Auto-escalation TBD
Investments TBD
Penalties TBD
Other features A study is to be conducted on whether to include independent contractors.

New York Secure Choice Savings Program

Status Legislation passed; implementation TBD.
Website New York Secure Choice Savings Program
Employers impacted Employers with ten or more employees at all times during the previous calendar year, in business for at least two years, and that have not offered a retirement plan in the preceding two years.
Plan type Roth IRA
Auto-enroll 3%
Auto-escalation No
Investments TBD
Penalties TBD
Other features TBD

New York City Retirement Security for All Act

Status Legislation passed; implementation TBD.
Website Retirement Security for All Act
Employers impacted Employers with five or more employees in the previous calendar year whose regular duties occur in the city. Also, employers who have been in business for at least two years.
Plan type IRA
Auto-enroll Yes - 5%
Auto-escalation TBD
Investments TBD
Penalties TBD
Other features Plan available to self-employed individuals at least 21 years of age.

OregonSaves Program

Status Active program
Website OregonSaves Program
Employers impacted

Employers with one or more employees.

Optional - Employers utilizing a PEO or leasing agency.

Plan type Mandatory Roth IRA
Auto-enroll

5% after 60 days for employees

18 or older

Auto-escalation 1% annual increase on enrollment anniversary up to 10%
Investments 2 Funds + State Street Target Date Series
Penalties Eligible employers must offer a plan or face a fine up to $100 per eligible employee per year (up to max of $5,000 annually)
Additional resources OregonSaves – state-mandated retirement plan

Rhode Island Secure Choice Retirement Savings Program

Status Legislation passed; implementation TBD.
Website Rhode Island Secure Choice Retirement Savings Program
Employers impacted Employers with 5 or more employees and satisfies requirements to establish or participate in a payroll deposit retirement savings arrangement.
Plan type Mandatory Auto IRA
Auto-enroll TBD
Auto-escalation TBD
Investments TBD
Penalties TBD

VT Saves

Status Implementation in progress; date TBD.
Website VT Saves
Employers impacted All employers with five or more employees in business within the past two years.
Plan type Mandatory Roth IRA
Auto-enroll 5%
Auto-escalation Yes - TBD
Investments TBD
Penalties TBD
Other features TBD
Additional resources VT Saves is replacing Vermont's former plan, Green Mountain Secure Retirement Plan.

RetirePath Virginia

Status Active program
Website RetirePath Virginia
Employers impacted Employers with 25 or more employees in business two years or more.
Plan type Mandatory Roth IRA
Auto-enroll 5%
Auto-escalation 1% annual increase every January up to 10%
Investments 4 Funds + LifePath Index Target Date Series
Penalties Up to $200 per eligible employee
Additional resources RetirePath Virginia

Washington Small Business Retirement Marketplace

Status Legislation passed; implementation TBD.
Website Washington Small Business Retirement Marketplace
Employers impacted In business two years or more, with employees working a combined minimum of 10,400 hours during the previous calendar year
Plan type Mandatory Auto IRA
Auto-enroll Yes - 3-7% TBD
Auto-escalation 1% per year to 10% - TBD
Investments TBD
Penalties TBD
Additional resources Washington State Retirement Marketplace
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.
A map of the United States that illustrates the status of retirement mandates by state.

What is a state retirement plan?

As states continue to pass retirement legislation, employers across the county must now choose a retirement plan  that is right for their business and their employees – a critical aspect of retaining top talent.

Here’s what employers need to know about mandatory, state sponsored retirement plans:

When states require employers to provide their employees with retirement savings opportunities, it’s known as a state-mandated retirement or state-sponsored retirement plans. Businesses generally have two ways to comply with these laws – enroll their employees into a state-sponsored retirement plans or sponsor a plan through the private market, such as those offered by ADP.

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Why mandate retirement plans?

Some states have begun mandating state retirement plans to address this country's retirement savings gap. Their response is based on research that shows:

The average working household has virtually no retirement savings.1

Employees are more likely to save when they have access to a 401(k) or similar plan by their employer.2

Only four in 10 businesses with less than 100 employees offer retirement benefits.3

Frequently asked questions about mandates for state retirement plans

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Speak to a retirement specialist to understand your state's legislation and know your options.

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This information is intended to be used as a starting point in analyzing state-mandated retirement plans and is not a comprehensive resource of all requirements. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services.

Unless otherwise agreed in writing with a client, ADP, Inc. and its affiliates (ADP) do not endorse or recommend specific investment companies or products, financial advisors or service providers; engage or compensate any financial advisor or firm for the provision of advice; offer financial, investment, tax or legal advice or management services; or serve in a fiduciary capacity with respect to retirement plans. All ADP companies identified are affiliated companies.

ADP, Inc. is affiliated with ADP Broker-Dealer, Inc. (“ADP BD”), a limited purpose broker dealer registered with the Financial Industry Regulatory Authority (“FINRA”), and operating pursuant to Securities and Exchange Commission (“SEC”) Rule 15c3-3(k)(2)(i), approved by FINRA to offer 401(k) and SEP/ SIMPLE IRAs, and related retirement plans (the “Retirement Products”) on a payroll deduction basis.

1 National Institute on Retirement Security

2 TransAmerica Center for Retirement Studies

3 LIMRA

4 Voluntary

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