By the KMA team
Ensure Compliance with Maine’s Retirement Savings Mandate
All Maine employers with 5 or more employees, that have been in business for more than two years, are required to comply with the Maine Act to Promote Individual Retirement Savings before December 31, 2024. Compliance can be met by either:
- Providing your own employer-sponsored retirement plan or
- Enrolling your employees in Maine’s state-sponsored plan, MERIT.
Key Requirements:
- Covered employers who do not offer a qualified plan must automatically enroll employees in the workplace retirement savings program through MERIT.
- Employees who opt out must be re-enrolled annually.
Past Deadlines by Business Size:
- 15+ employees: April 30, 2024
- 5 to 14 employees: June 30, 2024
- Future employers: December 31 of the year after meeting employer criteria.
Certification Requirement: If you already offer a qualified retirement plan, you must certify your exemption by visiting www.meritsaves.com. Failure to certify could result in penalties.
Noncompliance Penalties:
- $20 per employee between July 1, 2025, and June 30, 2026
- $50 per employee between July 1, 2026, and June 30, 2027
- $100 per employee on or after July 1, 2027
Next Steps:
- Visit meritsaves.com to register or certify your exemption.
- For assistance, call the Employer Helpline at 1-833-608-8811.
Don’t delay! Act now to avoid penalties and ensure compliance with Maine’s retirement savings mandate. Reach out to the experts at KMA for additional guidance.