A Bill to Create State Sponsored 401(k) Retirement Plan

SIFMA provides comments to the Maine legislature’s Joint Standing Committee on Labor, Commerce, Research and Economic Development (Committee) on a bill that would create a State-sponsored 401(k) retirement plan for participation by private employers, LD 992. SIFMA warns the Committee the bill would burden the State 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.