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W W W. M A I N E B I Z . B I Z 19 JA N UA R Y 2 2 , 2 0 2 4 F O C U S W E A LT H M A N A G E M E N T / R E T I R E M E N T "We are excited to be working with Colorado SecureSavings to deliver a proven automatic savings program that follows employees throughout their careers while being easy and free for participat- ing Maine employers," says Bordowitz. By late December, Colorado's program had nearly 12,000 registered employers. Vestwell, a digital 401(k) record- keeping platform in New York City, in partnership with the Bank of New York Mellon Corp., serves as the program administrator, providing recordkeeping, custodial and administrative services to employers and employees in Maine and Colorado. MERIT is overseen by a public board whose members are appointed by the governor and con- firmed by the legislature. e program is anticipated to reach 200,000 Mainers, or about 40% of the state's private-sector workforce. ere is no cost and minimal administrative requirements for employers, and no requirement for an employer match. All covered employees will be enrolled and have 5% of their paycheck automati- cally contributed to a Roth IRA account. MERIT will also allow voluntary enrollment for workers not employed by covered employers and self-employed individuals. ere are certain deadlines for employers to enroll. Organizations offering 401(k)s and other plans may be exempt but must still regis- ter with MERIT. Successful pilot "Overall, the pilot has gone very well," says Bordowitz. "Employees with funded accounts are in 14 counties. Most of the learning was fixing small technical glitches." e pilot enrolled 16 employers and the program now has 169 funded accounts. Employers ran the gamut, from a land trust to in Ogunquit to a day care company in Presque Isle. "We've got some retail establishments, some hospitality establishments, some cannabis companies, residential health care providers, small manufacturers," she says. "ey've been looking for ways to offer benefits to their employees." Companies with fewer than five employees have also signaled their inter- est, but at present there's no state-run option for them, she notes. "ere's a lot of interest from employers who want to provide this for their employees," she continues. "It's good for their employees and it helps retain employees. is is an easy way to start." e full program rollout begins this month. At the time of this article's pub- lication, it was expected that notification emails and hard letters would go out to employers on Jan. 17. After an employer registers with MERIT, all employees will receive information about the program and an invitation to open their online MERIT account. Employees can choose how much to deduct from each paycheck for their retirement savings, how their funds will be invested, or to opt out. If an employee does not take any action, an account will be opened for them and 5% of their earnings will be deposited into their MERIT account each pay period. An employee can make changes any time. 75% participation With about 9,600 employers to enroll, Bordowitz says she's happy with the success of the pilot. "e employers and employees I have spoken with have been very enthusiastic," she says. About a month into the program as a pilot enrollee, McNeill is encour- aged by the 75% participation rate he's seen among his 12 employees. "I think retirement [savings] is some- thing that everyone knows they want to do," he says. "But it can be hard to get it going. is provides a very easy way." Laurie Schreiber, Mainebiz senior writer, can be reached at lschreiber @ mainebiz.biz This is Briggs. We were there when he opened his one-man shop. We're here now as he grows his boat-building business. Someday he'll retire and sail to Bermuda. And when that day arrives, we'll be there. 1-800-447-4559 | bathsavings.bank MEMBER FDIC EQUAL HOUSING LENDER S O U R C E : Pew Charitable Trusts S O U R C E : AARP THE 'OPT-IN' OPTION 92% of employees participate in auto-enrollment 57% of employees participate in opt-in plans Employees are 15 times more likely to save for retirement in a workplace plan and 20 times more likely if it is automatic.

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