State-Mandated Retirement Plans: The Updated Landscape

Twenty states and at least one city have enacted legislation to create government-run retirement programs that workers in the private sector can join. These are typically payroll withholding savings plans using individual retirement accounts (IRAs).

Even though these plans are run by the state and don't require (or even allow) employers to contribute to them, they typically still impose some obligations on employers. Here are answers to frequently asked questions about these programs.

Q: What states have established a state-run retirement program?

A: As of the date of this blog’s publication noted above, twenty states have enacted legislation to establish a state-run retirement program or marketplace. Many of these programs are already active, while others are still in the implementation process. Check your state's program for details about its status. The states, the names of their state-run retirement programs, and their current statuses are listed below.

State	Program name (status)
California	CalSavers (active)
Colorado	Colorado SecureSavings (active)
Connecticut	MyCTSavings (active)
Delaware	Delaware Earns (active)
Hawaii	Hawaii Retirement Savings Program (set to launch later in 2026)
Illinois	Illinois Secure Choice (active)
Maine	Maine Retirement Investment Trust (active)
Maryland	MarylandSaves (active)
Massachusetts	Massachusetts Defined Contribution CORE Plan (for nonprofit organizations only) (active)
Minnesota	Minnesota Secure Choice Retirement Program (implementation in progress through phased approach based on employer size)
Missouri	Show-Me MyRetirement Savings Plan (active)
Nevada	Nevada Employee Savings Trust (active)
New Jersey	RetireReady NJ (active)
New Mexico*	New Mexico Work and Save (inactive)
New York	New York Secure Choice Savings Program (implementation in progress) New York City has also enacted an ordinance creating a city-run retirement plan.
Oregon	OregonSaves (active)
Rhode Island	RISavers (active)
Vermont	Vermont Saves (active)
Virginia	RetirePath VA (active)
Washington	Washington Saves (set to launch on July 1, 2027) Washington Small Employer Retirement Marketplace

* New Mexico’s program, which was voluntary, is currently inactive. Employers with employees in New Mexico should monitor the program’s website for possible developments.

Q: If my business is in one of the 19 states, am I required to participate in the state-run retirement program?

A: Many of these programs require covered employers to either enroll their employees into the state-run retirement program or sponsor a qualifying plan of their own through the commercial market, such as a 401(k) plan, SIMPLE IRA, or SEP. Notably, these requirements are often limited to employers of a certain size.

The following states require employers to either offer a qualifying retirement plan or participate in the state program.

State	Employers covered by state retirement-plan mandate
California	All employers
Colorado	Employers with 5 or more employees and in business for at least 2 years
Connecticut	Employers with 5 or more employees, provided each of them has been paid more than $5,000 in the calendar year
Delaware	Employers with 5 or more employees and in business for at least 6 months of the preceding calendar year
Hawaii	All employers
Illinois	Employers with 5 or more employees and in business for at least 2 years
Maine	Employers with 5 or more employees and in business for 2 years or more
Maryland	Employers with at least one W-2 employee, have been in business for 2 years, and use an automated payroll system
Minnesota	Employers with 5 or more employees and in business for the immediately preceding 12 months
Nevada	Employers with more than 5 employees and in business for at least 36 months
New Jersey	Employers with 25 or more employees and in business for 2 years or more
New York	Employers with 10 or more employees and in business for at least 2 years
Oregon	All employers
Rhode Island	Employers with 5 or more employees
Vermont	Employers with 5 or more employees and in business for at least 2 years
Virginia	Employers with 25 or more employees and in business for 2 years or more
Washington	Effective July 1, 2027, employers with employees working a combined minimum of 10,400 hours during the previous calendar year and in business for two years or more

Massachusetts and Missouri don't require participation even if employers don't offer a retirement plan.

If you already offer a qualifying retirement plan in one of the 17 states above or are otherwise exempt, you still may be required to register with the program and submit a certification to that effect (possibly even annually). Check your state law for details.

Q: What requirements do these programs impose on employers that don't offer a retirement program?

A: The requirements can differ depending on the state. For example, Connecticut employers with five or more employees in the state — at least five of whom have been paid more than $5,000 in the calendar year — are required to register with and facilitate the MyCTSavings program if they don't offer a retirement plan. These employers must also provide employees with information on the state program, enroll employees in the program, and deduct and remit employee contributions.

Q: When do I have to register with the state-run program if I am required to do so?

A: Each state has its own deadlines for registering, but they typically differ based on employer size.

For example, in New York, employers required to facilitate the program must register by the following deadlines:

March 18, 2026, if they have 30 or more employees
May 15, 2026, if they have 15 to 29 employees
July 15, 2026, if they have 10 to 14 employees

Keep in mind that many of the other state programs have already been fully implemented, so the deadlines may have already passed. However, these programs also typically have an annual deadline for employers that become newly covered by the requirement (e.g., they added enough employees to now meet the mandate’s threshold).

It is also important to note that employers are often allowed to register at any time prior to the applicable deadline.

Q: Are employees required to participate in the state-run plan?

A: When an employer doesn't already offer a retirement plan, employees are often automatically enrolled in the state-run plan, but employees may opt out of the plan or change how much they contribute.

Q: Should I participate in the state-run program or offer my own plan?

A: You should weigh the advantages and disadvantages of the state-run program and commercial plans to help make a decision that best meets your business needs.

Q: What are the advantages of offering a retirement plan?

A: The right retirement benefit can help you attract and retain talented employees and demonstrate your commitment to employees' long-term financial goals. For instance, in a tight labor market, offering a retirement plan can help make you an employer of choice among candidates contemplating multiple offers. Saving for retirement can also help reduce financial stress among employees.

Q: What is SECURE Act 2.0, and does it impact state-run retirement plans?

A: Enacted in 2022, SECURE Act 2.0 (the Act) is a set of provisions that are designed to make it more attractive for employers to offer retirement plans and improve retirement outcomes for employees.

For example, the Act provides an expanded tax credit for small businesses that offer a retirement plan.

While the Act doesn’t require employers to provide a retirement plan, it does have certain requirements for retirement plans when they are offered, such as automatic enrollment of employees. More information can be found in ADP’s Resource Center on Secure Act 2.0.

Conclusion

Employers in the states mentioned above should review applicable laws carefully and ensure they meet their compliance obligations. Even if you aren't located in one of these states, other jurisdictions are considering similar programs, so watch for developments.

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