Maine Retirement Savings Program
State of Maine IRA program
Year enacted |
2021 |
Status |
Enrollment will be in three phases beginning in 2023 with the following dates:
Any covered employer (including covered employers with fewer than five employees) may voluntarily offer the program to its covered employees on or after April 1, 2023. |
Employers affected |
Nongovernmental employers that have five or more employees, were in business during the current and prior calendar year, and haven't offered employees, effective in form or operation at any time within the current calendar year or two preceding calendar years, a specified tax-favored retirement plan (i.e., 401(a), 401(k), 403(a), 403(b), 408(k), 408(p), or 457(b) plan) |
Type of account |
Roth IRA with option to make a traditional IRA available |
Automatic enrollment |
Yes |
Auto-escalation |
The board has authority to add auto-escalation at 1% per year, up to 8% (may be mandatory or by participant election) |
Default contribution rate |
5% |
Employer contributions |
Not permitted |
Investment options |
The board will determine the default investment such as a series of target-date funds and a limited number of investment alternatives, including a principal preservation fund determined by the board.
In addition, the board may provide that each participant's initial contributions, up to a specified dollar amount or for a specified period of time, are required to be invested in a principal preservation investment or, in the board's discretion, must be defaulted into such an investment, unless the participant affirmatively opts for a different investment for those contributions. |
Fees |
The board will seek to keep fees, costs, and expenses of the program as low as practicable, except that any administrative fee imposed on a covered employee for participating in the program may not exceed a reasonable amount relative to fees charged by similar established programs in other states. The fee may be an asset-based or investment return fee, flat fee, or hybrid of the permissible fee structures described in this paragraph. |
Website |
TBD |
Source: Most of the information is from “State-Facilitated Retirement Savings Programs: A Snapshot of Plan Design Features,” Georgetown University Center for Retirement Initiatives, 10/31/21. It is subject to change without notice. Please contact the state to learn more.
Learn more about the opportunity with state-facilitated retirement plans
John Hancock Investment Management Distributors LLC is the principal underwriter and wholesale distribution broker dealer for the John Hancock mutual funds. Member FINRA, SIPC.
John Hancock Retirement Plan Services LLC offers administrative or recordkeeping services to sponsors and administrators of retirement plans. John Hancock Trust Company LLC provides trust and custodial services to such plans. Group annuity contracts and recordkeeping agreements are issued by John Hancock Life Insurance Company (U.S.A.), Boston, MA (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, New York. Product features and availability may differ by state. Securities offered through John Hancock Distributors LLC. Member FINRA, SIPC.
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