State Initiatives 2022: Several New Programs Will Begin to Enroll Workers, Some Begin Implementation Planning for 2023 Launch, While Others Consider Legislative Proposals and Partnership Opportunities
2022 STATE PROGRAM STATUS
During the 2022 state legislative sessions, at least 21 states had legislation to establish new programs, amend existing programs, or form study groups to explore their options. Two new programs were enacted in Hawaii and Delaware this year and one new study state was enacted in Arkansas.
Over the past decade, since 2012, at least 46 states have acted to implement a new program, study program options, or consider legislation to establish state-facilitated retirement savings programs.
Today, there are 16 states and 2 cities that have enacted new programs for private sector workers.
2022 STATE LEGISLATIVE ACTION
Visit the CRI Supporters Homepage to access the most up-to-date 2022 state legislative map, detailed information on the progress of state program implementations, the State Resource Center and much more.
2022 State Program and Legislative Map
(as of August 17, 2022)
Source: Georgetown University’s Center for Retirement Initiatives
|Legislative proposal and/or study commissions in 2022|
Programs enacted (2012-present)
|Combination (Voluntary) – Payroll Deduction IRA and Marketplace|
|Recent state efforts (2012-2022)|
|No recent state efforts|
2022 STATE PROGRAM IMPLEMENTATION UPDATES
18 Programs (16 states and 2 cities)
To date, new programs have adopted one or a combination of these four models:
- Auto-IRA (employer participation required if no plan is already offered)
- Payroll deduction IRA (voluntary)
- Multiple Employer Plan (MEP) (voluntary)
- Marketplace (voluntary)
There are now 18 enacted retirement savings programs (16 states and 2 cities**) for private sector workers.
|Individual Retirement Account
|Voluntary Payroll Deduction IRA||Voluntary Marketplace||Voluntary Open Multiple Employer Plan
|New Mexico||New Mexico
*The new Hawaii program is a variation on the auto-IRA model. Eligible employers must notify their employees about the program and, if employees choose to opt-in to the program, employers must then facilitate contributions to the programs.
**New York City’s program is expected to merge into the New York State program. The Seattle, WA program is on hold indefinitely pending state legislative action.
As of September 15, 2022, 2022, 7 states of the 16 state programs (5 auto-IRA – OR, IL, CA, CT and MD and 2 others – MA (MEP) and WA (Marketplace)) are open to eligible employers and workers.
For an overview of all the state programs (with hyperlinks to state program websites and additional information), see State-Facilitated Retirement Savings Programs: A Snapshot of Plan Design Features (22-01, June 30, 2022 UPDATE)
PROGRAM LAUNCH AND EMPLOYER TIMELINES
The experience of the more mature auto-IRA programs (i.e., OR, IL, and CA) demonstrates that state programs can shorten the timeline for onboarding employers. For example, the most recent auto-IRA program to launch – MyCTSavings – has a 12-month timeline, opening to all eligible employers on April 1, 2022, with a final deadline of March 30, 2023.
Oregon: OregonSaves opened to employers in 2017, and it is currently completing the onboarding of the smallest employers (those with 4 or fewer employees), which is scheduled to be completed in early 2023.
Illinois: Illinois Secure Choice rolled out three of its five waves of eligible employer registrations between 2018 and 2019, but two new waves of smaller employers were authorized to be added in 2021 (the program expanded the number of employers covered by law from those with 25 or more employees to those with 5 or more employees). The completion of the fourth wave (16-24 employees) is scheduled for November 2022, and the completion of the fifth wave (5-15 employees) is scheduled for November 2023.
California: CalSavers opened to all eligible employers in July 2019 with three waves, and it is currently in its third and final wave enrolling employers with 5 or more employees by June 2022.
Connecticut: MyCTSavings launched its employer pilot program at the end of October 2021. The first wave of the program (for employers with 100 or more employees) is scheduled to be completed in June 2022; the second wave (26-99 employees) in October 2022; and the third and final wave (5-25 employees) in March 2023.
Maryland: Maryland$aves launched its pilot in June 2022 followed by full program launch on September 15, 2022.
Colorado: The Colorado Secure Savings Program is currently planning an October 2022 employer pilot leading to the program’s launch and opening to all eligible employers in early 2023.
Virginia: The retirement savings program facilitated by Virginia529 has a projected pilot launch date in March 2023, with a projected full project launch scheduled on or before July 2023.
Programs in Maine, New Jersey, and New York are still developing their implementation timelines.
It is important to note that any employer can registered to participate in a state program at any time and does not have to wait for their enrollment wave or phase to do so. The deadline serves as a comply by date.
Other State Programs: The Massachusetts’ CORE MEP opened for enrollment in October 2017, and the Washington State Retirement Marketplace opened in March 2018.
State Partnerships: In November 2021, the Colorado Secure Savings Program and the New Mexico Work and $ave Program signed a first-in-the-country Memorandum of Cooperation (MoC) to pursue a formalized partnership agreement for their auto-enroll IRA programs. This partnership, if it is implemented, could be the first auto-enroll IRA multi-state program in the country. The MoC highlights areas of collaboration including shared program administration and financial services, marketing and outreach support, program evaluation and research, as well as data collection and participant privacy.