Maryland bill for state-run private-sector retirement plan heads to governor
By Rob Kozlowski
April 13, 2016 - Pensions & Investments
Maryland's General Assembly
passed a bill creating the Maryland Small Business Retirement Savings Program
and Trust, the latest state to create a retirement program for private-sector
employees who do not otherwise have access to an employer-sponsored retirement
plan. Rob Kozlowski
Maryland's General
Assembly passed a bill creating the Maryland Small Business Retirement Savings
Program and Trust, the latest state to create a retirement program for
private-sector employees who do not otherwise have access to an
employer-sponsored retirement plan.
The bill also creates the Maryland Small
Business Retirement Savings Board to implement and administer the program, which
creates mandated payroll deduction individual retirement accounts for small
business employees.
Members of the board would include the state treasurer,
currently Nancy K. Kopp; the state secretary of labor, licensing and regulation,
currently Kelly M. Schulz; three members appointed by the governor; three
appointed by the president of the Senate; and three appointed by the speaker of
the House of Delegates.
The state Senate passed the bill 46-0 on April 4, and
the House of Delegates passed the bill 97-41 on April 6, and it is on its way to
Gov. Larry Hogan's desk.
Mr. Hogan's spokeswoman Shareese DeLeaver-Churchill
would not say whether he plans to sign the bill, but said in an e-mail that gall
bills that passed are currently under review by the governor and
administration.h Mr. Hogan's next bill-signing date is April 26.
Maryland is
the latest state to pass such a bill for a program for private-sector employees
following programs adopted by California, Oregon, Washington and Illinois. The
U.S. Department of Labor is currently finalizing a rule it had proposed in
November that would allow such programs and give them safe harbors addressing
states' concern over federal pre-emption under the Employee Retirement Income
Security Act.