Six years ago, Maryland Gov. Larry Hogan signed legislation creating a state-sponsored retirement program designed to help thousands of small-business owners set up retirement plans for their employees. This week, that legislation finally took effect.
The program, dubbed MarylandSaves, gives employers who have found it too cumbersome to establish traditional retirement plans an option to do so at little cost. The service is free for employers, and though there is an annual $300 filing fee for setting up automatic deductions, business owners can claim a fee waiver on their annual taxes so long as they remain in the program.
The service, which has been offered under a pilot program since July, could be a useful perk for employers at a time when many are struggling to attract or retain workers. According to state officials, nearly 1 million Maryland workers do not have access to employer-sponsored retirement plans.