Prince Georges County Businesses And Employees Can Look to MarylandSaves for Employee Savings Programs
In nearly half of all American workplaces, there is no retirement savings plan available, according to an AARP study. Nearly 57 million people work for an employer that does not offer either a traditional pension or a retirement savings plan.
One of the first states to do something about it is Maryland.
An estimated 1 million Marylanders work full-time at a small business that doesn’t have the capacity to offer traditional retirement plans.
Many companies don’t offer retirement savings for a multitude of reasons, including the administrative burden and complexity, risk of legal liability, and cost; and setting up a 401k plan can be prohibitive for many employers, especially if plans include some form of matched funds.
A new Maryland law requires employers that “pay employees through a payroll system or service provide access to a payroll deposit retirement arrangement.” MarylandSaves was created to make it free and easy for employers to make a retirement program available to their employees and be in compliance with the new law.
The AARP data also reveals disparities by race and ethnicity. Nearly 64% of Hispanic workers, 53% of Black workers, and 45% of Asian American workers lack access to an employer-provided retirement plan. Together, these employees account for about 46% of the total 57 million workers with no ability to save for retirement through a payroll deduction.
Since the MarylandSaves program’s launch in the fall of 2022, already more than 1,200 businesses have signed up and enrolled more than 16,000 employees to begin saving for a more secure financial future.
The savers’ WorkLife Savings Accounts are owned by the individual, with funds available to cover both emergencies today and retirement in the future and other benefits that go beyond most current retirement plans.
A local example of a company that has taken advantage of the MarylandSaves program is Bowie’s Power Cleaning Services, Inc., a full-service janitorial organization. Power Cleaning Service’s approach to commercial cleaning is one of partnership with the client. That philosophy extends to the company's employees, offering a step in the right direction toward creating a brighter financial future.
We all have dreams for our families and our future. With MarylandSaves, employers in Prince George’s County and across the State now have the opportunity to make those dreams come true one small step at a time. It’s never too late to get started and now everyone has the opportunity to save.
Glenn Simmons is Executive Director and CEO of MarylandSaves, a program created by the State of Maryland that helps small business owners offer retirement plans to employees who may not have been able to afford or manage a retirement plan. Learn more at www.MarylandSaves.com