New Maryland Law Aims to Spur Retirement Savings Through State Plan

From The Baltimore Sun:

An estimated 1 million Marylanders work for businesses that do not offer a retirement savings plan. Legislation that becomes law Friday will give them state-sponsored and private alternatives.

Maryland workers who don’t have access to 401(k)s or other federal plans may choose to have money deducted from their paychecks and placed in a retirement account intended to supplement Social Security.

The new law — at least four years in the making — puts Maryland at the forefront of a national effort among states to fill what proponents call a gap left by the federal government, which they say has made it too difficult for smaller businesses and their employees to set up retirement accounts.

“Maryland has an extremely robust law,” said Sarah Gill, legislative representative for state government affairs at the AARP in Washington. “I’d say it was one of the best in the country.”

The law is one of more than 250 passed by the General Assembly this year that will take effect Friday, the start of the state fiscal year.

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