"We needed to provide Maine employers with time to help us shape MERIT and join the pilot before the full launch of the program," Ms. Bordowitz wrote in an email.
"We also need time to make sure employers get a chance to learn about MERIT and their obligation to register employees well ahead of the enforcement dates," she added.
The Maine Retirement Savings Program is expected to cover 200,000 employees in small businesses.
Although the governor signed the original law in June 2021, the state legislature proposed — and the governor signed — a series of amendments in June 2023 covering such issues as enrollment requirements and the creation of a pilot program.
One outcome of the delay was the Maine Retirement Investment Trust's becoming a partner with the Colorado SecureSavings Program, Denver. The agreement was announced in mid-August.
"The primary factors were being able to lower costs for account owners in the program … and being able to bring a program online faster," Ms. Bordowitz wrote.
"As a state with a smaller population, we will benefit from the fees negotiated by Colorado, wrote Ms. Bordowitz, adding that she did not have a "solid figure" for the savings via partnership vs. acting alone.
"Since Colorado has the framework in place, we can roll it out faster," she wrote.
The Maine program calls for covered employees contributing 5% of salary each year, although they can opt out. The Maine Retirement Savings Board, which oversees the program, can change the default rate. The board also can adopt an auto-escalation policy, allowing the raising of contributions 1% per year to a maximum of 10%, including the initial auto-enrollment.
The Maine Retirement Savings Board recently issued proposed rules setting April 30, 2024, as the deadline for all employers with 15 or more covered employees to register for the program and June 30, 2024, as the registration deadline for employers with five to 15 covered employees. Employers with fewer than five employees may join next year, too.
The proposed rules cover employer exemptions as well as terms for registering employees. The rules also identify restrictions for employers, such as discouraging or preventing employees from participating in the program or providing investment advice to employees. They also outline penalties for employers failing to meet the registration requirements.
The board will hold a public hearing Sept. 20 at state office building in Augusta as well as virtually. The deadline for public comments is Oct. 2.
