MarylandSaves is a state-sponsored program designed to make it as easy as possible for businesses to offer their employees a voluntary, automatic, low-cost, portable retirement and emergency savings plan. Under Maryland law, established businesses that use an automated payroll system are required to either offer a retirement plan or sign their employees up for the MarylandSaves program. Businesses that do so will receive $300 per year via a waiver of the Maryland business annual filing fee. There are no employer financial contributions or MarylandSaves fees to employers. All administrative fees are paid from employee accounts.
Employers will have no reporting requirements and will pay nothing to facilitate MarylandSaves for their employees. The registration process is simple. Most employers will be able to enroll in less than four minutes when the program launches in September 2022.
Employee participation is completely voluntary. Employees are automatically enrolled, but they can withdraw funds, choose investment options, change their savings amount, or opt-out entirely at any time. Account fees will be lower than commercial alternatives and savers keep their accounts when they change jobs.
The Maryland Small Business Retirement Savings Board was created by the State of Maryland in 2016. The board consists of the State Treasurer and Secretary of Labor, both ex officio, and three persons appointed by each of the Governor, the President of the Senate, and the Speaker of the House of Delegates. Funded by startup loans from the State, the Board designed the workplace retirement and emergency savings program.