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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 7 , 2 0 2 5 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 2024 to nearly 10,000 employers and 200,000 employees — about 40% of Maine's private-sector workforce. ere is no cost for employers, mini- mal administrative requirements and no requirement for an employer match. Covered employees have 5% of their paycheck automatically contributed to a Roth IRA account. MERIT allows voluntary enrollment by self-employed individuals and workers with employers who aren't eligible for the program. Organizations already offering qualified retirement plans are exempt but must certify their exemption with MERIT. Enforcement will begin in 2025 for employers who were required to register with MERIT in 2024. Ongoing rollout So far, the program has registered 2,506 employers and has enrolled 12,015 employees with funded accounts total- ing over $8.2 million. e program will continue to reach out to the approximately 3,500 employ- ers that haven't registered or haven't cer- tified that they're exempt, says Elizabeth Bordowitz, MERIT's executive director. "I had a couple of employers reach out to me recently, saying, 'We're going to get it done,'" she says. is year, MERIT will start the process anew for businesses that became required to participate over the past year — for example, now meeting the threshold of having over five employ- ees — based on data from the Maine Department of Labor. e program is attracting mixed reviews. "I have employers saying, 'is is one more thing the state is having me do,'" Bordowitz says. "But I think most employers are happy to do it for their employees. And I get employers somewhat disappointed that they can't make contributions on behalf of their employees. ere's no match, which many employers have asked about and would like to do." At Len Libby, there were some glitches at the outset. "e interface between our payroll company and the MERIT program was not seamless," says DeGrinney of Len Libby Candies. But he credits Bordowitz for getting things ironed out. "She actually came on-site and made sure our problems got resolved," he says. "It's top-notch in terms of responsiveness." Still learning Overall, says Bordowitz, the roll-out has benefited from states with similar programs. "We're all, of course, still learning," she says. "ese programs are new." She continues, "It improves every day. e help center gets more robust. Several Maine payroll providers have set up integrations that automate the contributions process for employ- ers. It will get easier and we will keep improving." Let us help you write your next chapter. For the life you choose. At Norway Savings Asset Management Group, it's not necessarily the size of your nest egg we care about — it's the story behind it. Your planning decisions are a reflection of your values and your future. They're about the choices you've made to get here, and your vision for what comes next. We take the responsibility of protecting your financial future incredibly seriously. We make sure your story lives on. 207.482.7920 norwaysavings.bank N ot F DIC I n su red • N o B a n k G ua ra ntee • M ay Lose Va lue Auto-IRAs A number of states are attempting to boost retire- ment saving by adopting "auto-IRA" policies that require employers not currently offering an employer- sponsored retirement plan to either establish such a plan or enroll employees in state-facilitated individual retirement accounts (IRAs). In 2023, expansions of auto-IRA policies occurred in Illinois (to firms with 5 to 15 employees) and Connecticut (to firms with 5 to 25 employees). Colorado, Virginia and Maine began implementation. S O U R C E : Georgetown University Center for Retirement Initiatives Plan access In the U.S., as of March 2023: 15% of private industry workers had access to a defined benefit plan, 11% chose to participate 67% of workers had access to defined contribution plans, 49% chose to participate Defined benefit plans provide employees with guaranteed benefits based on plan formulas. Defined contribution plans determine individual account values based on amount of money contributed and rate of return. S O U R C E : U.S. Bureau of Labor Statistics C O N T I N U E D O N F O L L OW I N G PA G E »

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