The Colorado SecureSavings Program and the Maine Retirement Investment Trust have established a partnership that will see the two state-run retirement savings programs combine forces to achieve greater economies of scale.
As noted in a press release announcing the collaboration, this move will allow Maine to formally begin operation of its fledgling program, which will eventually require participation by all employers with five or more employees that don't already offer a retirement savings option.
Colorado's program was enacted in 2020, and like Maine's program, it will eventually require participation for employers with five or more employees.
Features and Options
Both programs feature auto-enrollment Roth individual retirement accounts as the default, with the option to add a traditional IRA if the employer chooses. The default contribution is 5% of salary, with authority to use auto-escalation at 1% per year up to a maximum of 8%.
According to Henry Beck, Maine treasurer, this partnership represents the first of its kind in the United States, and the goal is to make it easy for everyone in both states to automatically save for their retirement at work.
"Workers in every state want a free and easy way to save so they can retire with dignity," Beck said. "In partnering with Colorado we will share costs, create scale and tailor a retirement savings program to meet the needs of Mainers."
