The Maryland General Assembly's Senate Budget and Taxation Committee and House Economic Matters Committee heard legislation last week that would create a state-run retirement savings plan for private sector employees whose employers do not offer retirement plans. The cross-filed bills, SB312 and HB421, would establish the Maryland Secure Choice Retirement Savings Trust and Program. Employers with at least five (5) employees that do not offer a retirement plan would be required to make the plan available to employees through payroll deductions, unless the employee opts out.
GSSCC will oppose this bill because it would create undue administrative burdens and additional costs for small employers that would be required to set up payroll deductions, enroll employees, and collect forms from employees who opt out. Similar retirement savings plans are already available from banks, brokers, and other institutions, and there is no evidence that a state-run retirement plan can be provided more economically than plans currently available in the marketplace.
This bill is co-sponsored by Montgomery County Senator Richard Madaleno and Delegates William Frick, Kumar Barve, Al Carr, Bonnie Cullison, Jim Gilchrist, Sheila Hixson, Eric Luedtke, David Moon, Kirill Reznik, and Jeff Waldstreicher. Members who have concerns about this legislation should contact their Montgomery County representatives.