MarylandSaves Takes Effect September 2022
MarylandSaves will launch state-wide in September 2022 and will require most Maryland employers to offer their employees some sort of retirement savings. This can be employer sponsored (i.e. traditional pension, a 401 (k) plan, a 403(b) plan, a SEP plan, a SIMPLE IRA plan, a governmental deferred compensation plan) or a WorkLife account from MarylandSaves.
What is the MarylandSaves Retirement Savings Program?
MarylandSaves is a new retirement savings program that was created by Governor Hogan and the Maryland Legislature. MarylandSaves is funded by employee savings which means there are no employer fees and employer contributions are not allowed. Employers have no fiduciary responsibility and employee participation is voluntary. Employee savings are deposited into their personal WorkLife account, which is a Roth IRA, administered by private sector financial services firms and overseen by a public board that includes the Maryland State Treasurer and Maryland’s Secretary of the Department of Labor.
Which Employers Should Register?
Employers are required to enact the MarylandSaves program if:
- Their business is registered to conduct business in the state of Maryland
- They have at least one W-2 employee
- They currently do not offer a retirement savings program to employees
- Their business was founded on or before January 1, 2021
- Their employees are paid through an automated payroll system
As a bonus, Maryland will waive the $300 annual filing fee every year for companies that participate in the MarylandSaves Retirement Program. Businesses that already have a retirement savings program in place can still qualify for the $300 waiver.
How Do I Register My Company?
You can enroll your company into the program in three easy steps: register, set up and update. Before enrolling, you will need a unique access code which will be sent to you via mail or email from MarylandSaves, so be on the lookout! You will need this access code along with your company’s federal Employer Identification Number (EIN) to register. Then, you will need to upload payroll and employee information into the system and submit your employees’ savings contribution levels. Once that is completed, you will just need to do basic ongoing account maintenance. This includes submitting your payroll details every pay period and keeping your employees’ payroll contributions and staff list up to date.
What Will Employers NOT be Responsible For?
Employers will have a limited role in facilitating MarylandSaves. Here is what employers will not be responsible for:
- Setting up your employees’ retirement savings account, this will happen automatically.
- Helping employees choose investments and answering questions about MarylandSaves and its investment portfolios.
- Managing MarylandSaves investment options and processing employee investment accounts.
- Processing distributions from employee investment accounts.
- Managing employee investment account changes. Your employees will be responsible for maintaining their account information and settings if enrolled.
Additional Resources
MarylandSaves will have online resources available 24/7 and call center support available weekdays from 9:00am to 6:00pm ET to answer any questions regarding the program. There is also a Frequently Asked Questions page that explains the process more in-depth.
Contact your BSSF advisor if you have any further questions.