State-mandated retirement plans are programs established by state governments to provide workers with access to retirement savings options, particularly when they lack employer-sponsored plans. These programs may include traditional pension plans or defined contribution plans such as 401(k)s or Individual Retirement Arrangements (IRAs). Employers in states with these mandates are required to either enroll their employees in the state’s program or offer an alternative qualifying retirement plan.
Several states, including California, Colorado and Connecticut, have implemented these programs with the goal of enhancing the financial security of their workforce. It is crucial for employers in states with mandated retirement plans to understand their obligations to either participate in the state program or provide their own qualifying plan.
To find additional information about state-mandated retirement plans, see state-mandated retirement plans in the Insperity® Help Center.