Starting this summer, employers in Maryland with automatic payroll systems will be required to offer a retirement plan or sign employees up with a state plan.
The Maryland Small Business Retirement Savings Program was signed into law by Maryland Gov. Larry Hogan in 2016. Originally planned to go into effect in the fourth quarter of 2020, the program was delayed until the summer of 2022 due to the COVID-19 pandemic.
The program will provide Maryland workers with access to a payroll-deducted savings program if they are not eligible to participate in an existing employer plan, as well as provide an incentive for employers to offer a payroll savings plan to all their employees.
If an employer participates in the program or offers their employees a qualified plan, the state will waive the $300 annual report filing fee every year they participate or offer a qualified plan.
The Maryland Program will include privately managed investment options, with a default option if an employee doesn’t want to choose. Anyone who is automatically enrolled may choose a different contribution rate or opt out of the program entirely.
If you have any questions about the information above, please contact your E. Cohen advisor.