Legislative Summary:
In April 2021, Senate Bill LD1622 was introduced by Senator Eloise Vitrelli (D) and was passed by Senate and House in June 2021. The Act was signed by Governor Janet Mills on June 23, 2021.
Program Description:
The Maine Retirement Investment Trust (MERIT) Program is administered by the Maine Retirement Savings Board, to provide a state-facilitated payroll-deduction individual retirement savings plan to private sector employees who do not have access to employer-sponsored retirement savings plans.
Affected Employers:
Employers with more than five (5+) employees, that have been in business for at least two years, and have not offered a retirement plan within the current calendar or two preceding the calendar years. Self-employed individual may participate in the program if they would like as well, but it is not required.
General Requirement:
Automatic enroll employees at 5% deferral with annual increases of 1% (up to a maximum of 8%) of the enrollee’s wages.
Launch Status:
Full Implementation:
Compliance Deadline:
| Deadline | Affected Employers |
|---|---|
| April 1, 2023 | Employers with 25+ employees |
| October 1, 2023 | Employers with 15+ employees |
| April 1, 2024 | Employers with 5+ employees |
Non-Compliance Penalties:
| Deadline | Maximum Penalty |
|---|---|
| July 1, 2025 | $20 per employee |
| July 1, 2026 | $50 per employee |
| July 1, 2027 | $100 per employee |
Employer Costs:
Employee Costs:
Investments:
The program is anticipated to offer a suite of target date funds (TDFs), as the default investment option, and additional investment options - including a capital preservation, fixed-income, equity funds.