Maryland will become the latest state to create a retirement program for private-sector workers who do not have access to an employer-sponsored retirement plan, under legislation that Gov. Larry Hogan is scheduled to sign Tuesday.
The Maryland Small Business Retirement Savings Program and Trust, scheduled to take effect July 1, creates mandated payroll deduction individual retirement accounts for employees of small businesses and an 11-member board to implement and administer the program.
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 state Senate; and three appointed by the speaker of the House of Delegates.
People who work at least 30 hours per week for private-sector employers with 10 or more employees will contribute 3% of wages, but employees can opt out of the program.