Final version included amendments geared toward businesses.
Gov. Hogan Signs State-Run Retirement Planning into Law
Last month, Gov. Larry Hogan signed the Maryland
Small Business Retirement Savings Program and Trust (Senate Bill 1007/House
Bill 1378) into law, extending state-run payroll deduction retirement plans to
nearly 1 million workers. NFIB opposed this bill, but the good news for small
business owners is that before passage, the Legislature heavily amended it for
the private sector.
Under the bill, any employer who uses an
automatic payroll system and does not offer a retirement plan to their
employees will be required to offer a state-run retirement plan. Employers who
currently offer retirement plans or who begin offering the new state-run plan
will receive an exemption from the Department of Assessments and Taxation’s
annual $300 business filing fee. If an employer does not offer an employee
retirement savings program, they forfeit the filing fee waiver.
All employees will be automatically enrolled in
the retirement plan unless they elect to opt out of it, and employers are free
from any fiduciary responsibility and contribution requirements.