State-run retirement savings programs may be boosting the creation of new private-sector plans, according to a study from the Pew Charitable Trusts released Friday.
Businesses in California, Illinois and Oregon — the first three states to launch state-facilitated programs to help private-sector workers without workplace plans save for retirement — continued to launch new plans in 2021 at rates similar to or exceeding those in states without such programs, the study found.
In California, for example, the rate of introduction of new plans, as a share of existing plans, rose to an average of 9.4% after launching the CalSavers program in 2019 from 8.1% before the launch.
Illinois and Oregon saw similar increases after introducing their Illinois Secure Choice and OregonSaves programs in 2018 and 2017, respectively. In Illinois, the average share of new plans increased to 6.2% from 5.3%, while Oregon saw the share of new plans jump to 8.5% from 6.7%.
The findings appease industry worries that state plans might crowd out the private market for plans, the researchers said in the report.
"The changes in the share of new plans pre- and post-implementation of the state programs aligns with national trends and in some cases proves larger than the national change," the authors said.
The study is based on data from Form 5500s and Form 5500-SFs, or short forms typically for plans with fewer than 100 participants, from 2013 through 2021.