Other States’ Efforts
When it comes to “retirement security,” there is more than one way for states to design savings programs for working people.
The majority of states now working on retirement security are working on “auto-IRA” programs. This type of retirement security initiative requires automatic deductions from workers’ paychecks into investment accounts workers own and carry with them.
Other models of so-called retirement security programs?
- Multiple-employer plans (MEPs) are qualified retirement plans regulated by the IRS and ERISA (the Employee Retirement Income Security Act) and involve two or more “unrelated” employers, and
- Marketplace plans, where states contract with private investment companies, banks, etc., to connect eligible employers with qualifying savings plans.
California; Connecticut; Illinois; Maryland; Oregon; and Seattle, Washington have designed – or are in the process of designing – auto-IRA retirement savings programs.
New Jersey and Washington are planning marketplace plans.
Vermont is doing MEP.
All but eight states, according to The Georgetown University Center for Retirement Initiatives, have either introduced retirement security bills, enacted laws, or are actively considering retirement security programs.