Seven states – California, Connecticut, Illinois, New Jersey, Maryland, Oregon and Washington – are in various stages of implementing state-sponsored retirement savings plans, according to an Associated Press article published this week.
Dozens of small business owners recently gathered in Schaumburg, IL, to learn about the new state-sponsored retirement savings initiative, “Secure Choice IRA,” reported Maria Ines Zamudio. Officials said it could help about 1.2 million workers who don’t have access to an employer-sponsored retirement plan.
California’s plan will automatically enroll about 6.8 million employees. Employees can opt-out of the plan and employers are not required to match contributions. Payroll deductions are expected to start in 2018.
At least 30 states have considered proposals to study or establish state-sponsored retirement savings plans over the past five years, according to the Center for Retirement Initiatives at Georgetown University. The Labor Department estimates that as many as 70 million workers could benefit.