A growing number of states require that employers offer their employees a way to save for retirement through automatic payroll deductions. To comply with these mandates, employers must either offer to enroll employees in a state-run program or sponsor a private plan such as the JRB 403(b) Retirement Plan.
As a benefit of USCJ membership, the JRB Retirement Plan is open to all employees – clergy and non-clergy – at no cost to synagogues and Movement organizations.
This article briefly reviews the rules for the states with active retirement mandates. Most state programs are mandatory for employers, although some exempt non-profits and religious organizations. Most also require automatic enrollment (employees have the opportunity to opt out) and a minimum required contribution. Many states have significant penalties for non-compliance.
We also provide basic information on the state programs currently in development as well as those that are proposed.
Beyond the Mandate – Why should a synagogue offer a retirement plan?
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JRB Plan Participants receive additional benefits.
- Complimentary financial consultations
- Complimentary life insurance, disability insurance and pension continuation insurance**
*Contracts 101: Employer and Employee Rights and Responsibilities Parashat Beha’alotecha, Numbers 8:1-12:16 by Rabbi Mark Greenspan, Rabbinical Assembly. Page 4, Conclusion 7.
** Annual contribution of $1,200 required to receive complimentary insurance benefits.
Status of State Retirement Mandates
- California’s CalSavers requires employers with one or more employees to offer retirement benefits. CalSavers requires automatic enrollment with a 5% default contribution amount.
- Colorado’s SecureSavings requires all Colorado employers who have been in business for at least two years and have five or more employees to offer a retirement plan. SecureSavings includes automatic enrollment with a 5% default contribution. The contribution amount increases 1% annually up to 8%.
- Connecticut’s MyCTSavings requires employers with five or more employees earning at least $5,000 annually to offer a retirement plan. MyCTSavings includes automatic enrollment with a 3% default contribution.
- Delaware EARNS requires all employers that do not offer a retirement savings plan and who have five or more employees receiving a Form W-2 to register for the program. Delaware EARNS requires automatic enrollment with a 5% default contribution. The contribution escalates 1% annually to 10%.
- Illinois Secure Choice requires all employers active for at least two years, with five or more Form W-2 employees to offer a retirement plan or participate in Illinois Secure Choice. Illinois Secure Choice has automatic enrollment with a 5% default contribution amount.
- The Maine MERIT program applies to all employees with five or more employees working in organizations operating for two or more years. Employers must offer a retirement plan or participate in MERIT. Maine MERIT includes automatic enrollment with a minimum 5% default contribution. This amount automatically increases 1% annually up to 10%.
- MarylandSaves requires all employers with at least one employee to offer all employees (regardless of hours worked) a retirement plan or participate in MarylandSaves. MarylandSaves includes automatic enrollment with a minimum 5% default contribution.
- Massachusetts’ CORE Plan encourages all 501(c) organizations established or chartered in Massachusetts to offer a retirement plan, but participation is voluntary. CORE Plan includes automatic enrollment with a 6% default contribution. Contributions automatically increase annually by 1% or 2% based on the employer’s election. Automatic contribution increases stop at 15%
- New Jersey Secure Choice applies to employers with 25+ employees operating for at least two years who do not already offer a retirement plan. New Jersey Secure Choice includes automatic enrollment with a 3% default contribution.
- OregonSaves requires employers with at least one employee to offer a retirement plan or sign up for OregonSaves. It includes automatic enrollment with a 5% default contribution. The contribution escalates 1% annually up to 10%.
- Vermont’s VT Saves requires all employers with 5+ employees and operating for at least two years to offer a retirement plan or VT Saves. VT Saves includes automatic enrollment with a 5% default contribution, increasingly by 1% annually up to 8%. For employers with 5-14 employees, the compliance deadline is July 1, 2026.
- Virginia’s RetirePathVA requires all employers with at least 25 employees and in operation for at least two years to offer a retirement plan or participate in RetirePath Virginia. RetirePathVA requires automatic enrollment with a minimum contribution of 5% annually. This increases by 1% each year up to 10%.
States with Mandates in Development
The following states have enacted legislation and are in the process of implementing a state-mandated program.
| State | Program Name | Covered Employers | Employer Participation |
|---|---|---|---|
| Georgia | Peach State Saves | 5+ employees | Voluntary |
| Hawaii | Hawaii Retirement Savings Program | 1+ employees | Mandatory |
| Minnesota | Minnesota Secure Choice Retirement Program | 5+ employees | Mandatory |
| Missouri | Missouri Show-Me MyRetirement Savings Plan | < 50 employees | Voluntary |
| Nevada | Nevada Employee Savings Trust | 5+ employees | Mandatory |
| New Mexico | New Mexico Work and Save IRA | 1+ employees | Voluntary |
| New York | New York State Secure Choice Savings Program | 10+ employees | Mandatory |
| Pennsylvania | Keystone Saves | 5+ employees | Mandatory |
| Rhode Island | RI Savers | 5+ employees | Mandatory |
| Washington | Washington Saves | 1+ employees | Mandatory |
States Considering Mandates
Several states are also considering legislation to enact a state-mandated program. These states include Alaska, Arizona, Arkansas, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, West Virginia, Wisconsin, and Wyoming.
You can comply with all of these state mandates by offering your staff the retirement plan designed for those in the Conservative Movement – the JRB 403(b)(9) Retirement Plan. Participating staff will also receive complimentary financial consultations and insurance benefits, which the state programs do not offer.
If your clergy already participate in the JRB, it is very simple and costs nothing to expand coverage to other employees – and comply with state law.
To comply with these state requirements, take advantage of your USCJ membership and contact the JRB today to give your staff a retirement saving program built for the Conservative Movement!
This article is based on the JRB’s current understanding of the status of state retirement plan programs and requirements. Please review your State’s specific requirements for your organization. The above information is not designed to be used as legal or tax advice.