Legislation to Create a Public Option Pension System

SIFMA provides comments to the Maine Joint Standing Committee on Appropriations and Financial Affairs on pending legislation that would create a public option pension system, LD 1473.

SIFMA agrees there is a savings challenge in this country, and additional education is part of this process, with age appropriate programs for children and adults. Enhanced federal and state programs and incentives encouraging more employers to offer these plans and more employees to utilize them would be helpful. SIFMA offers its experience and expertise to work with the State of Maine on such efforts.

However, SIFMA believes LD 1473 is a step in the wrong direction. If enacted, the bill would burden Maine with additional costs and liability to “develop, establish and administer” a new program. Such a program would directly compete with the private market which today provides a wide variety of individual retirement account options for employees who are ready to contribute a percentage of their annual compensation towards retirement.