Mandating work

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C., I learned that 31 states have enacted, proposed or considered legislation that would mandate employer-based retirement plans for residents.

Aside from California, legislation has already passed in Illinois, Connecticut, Maryland and Oregon.

Massachusetts would create an employer-mandated auto-IRA, but employers could choose an alternative: They could join a multiple employer 401(k) plan, sometimes called a MEP.(AARP strongly backs the state-level employer retirement savings mandate.) “What we’re seeing right now is a major improvement in the status quo,” notes John.These initiatives have the hallmarks of a bipartisan movement, as other states are taking up the issue. State and local public-employee groups are rallying to the cause, fearful that their retirement plans could be at risk if their private-sector peers remain uncovered.When the program begins, the money will be invested conservatively, in U. Instead of an employer mandate, they’ve created centralized marketplaces for employers to learn more about retirement savings plans and then offer low-cost, low-burden plans if they choose.Massachusetts established in 2012 a savings plan for small nonprofits.

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