Valor Payroll Solutions
State Mandated Retirement Plans
Your Small Business Payroll Compliance Partner
Table of Contents
Millions of Workers Still Lack Retirement Access
According to Guideline, there are over 5.8 million small businesses in the U.S. (defined as having 0–99 employees) that employ 42 million workers. Surprisingly, 74% of those employees lack access to any retirement plan, and 90% do not have access to a 401(k).
Why States Are Stepping In
To address this gap, several states have passed legislation to offer state-sponsored retirement plans. Some states have gone a step further by mandating that employers provide a retirement option—either through a private plan or by enrolling in the state program.
What This Means for Small Businesses
By offering a retirement plan now, employers can:
Stay ahead of state mandates
Support employee financial wellness
Improve hiring and retention
Even if your state doesn’t yet require it, preparing now ensures you’re ready for future compliance.
Choosing the Right Retirement Solution
The Department of Labor’s Choosing a Retirement Solution for Your Small Business guide is a great place to start. It outlines a variety of plan types—from SIMPLE IRAs to 401(k)s and SEP plans—making it easier to find an option that fits your team and your budget.
See Where Your State Stands
Below, you’ll find a summary of current state legislation along with helpful links to learn more and stay compliant.
| State | State-Mandated Retirement Program | Who Must Comply? |
|---|---|---|
| California | CalSavers | Employers with 1 or more employees are required to comply by December 31, 2025. |
| Colorado | Colorado Secure Savings Program | Employers with 5 or more employees who have been in business for at least 2 years. |
| Connecticut | MyCTSavings | Employers with 5 or more employees. |
| Delaware | Delaware EARNS | Employers with more than 5 employees who have been in business in the state for 6 or more months. |
| Hawaii | Hawaii Retirement Savings Program | FUTURE COMPLIANCE - Target date TBD - Employers with 1 or more employees who have been in business for 2+ years |
| Illinois | Illinois Secure Choice | Employers with 5 or more employees who have been in business for at least 2 years. |
| Maine | Maine Retirement Savings Program | Employers with 5 or more employees who have been in business for at least 2 years and have not offered a qualifying plan in the preceding 2 calendar years. |
| Maryland | Maryland$aves | All employers that have at least 1 W-2 employee, have been in business for at least 2 years, and use an automated payroll system. |
| Massachusetts | CORE | Voluntary; available to nonprofit organizations with 20 employees or fewer. |
| Minnesota | Secure Choice Retirement | Soft launch (voluntary) January 1, 2026 Effective April 1, 2026 employers with 100+ employees Effective July 1, 2026 employers with 50+ employees Effective January 1, 2027 employers with 25+ employees Effective July 1, 2027 employers with 10+ employees Effective January 1, 2028 employers with 5+ employees |
| Missouri | Missouri Workplace Retirement Savings Plan | Voluntary - Employers with 50 or fewer employees can elect to participate in the state sponsored retirement plan. |
| Nevada | Nevada Employee Savings Trust | Employers with 6+ employees who have been in business for at least 36 months and have not offered a qualifying plan in the 3 preceding years. |
| New Jersey | Secure Choice Savings Plan | Employers with 25 or more employees that have been in business for at least 2 years are required to offer a retirement plan. Smaller employers can voluntarily utilize the state program. |
| New Mexico | New Mexico Work & $ave | Voluntary, with employer mandates currently on hold indefinitely. |
| New York | New York State Secure Choice Savings Program | Effective 3/18/2026 - Employers with 30 or more employees who have been in business for at least 2 years and have not offered a qualified plan in the preceding 2 years. Employers with 15+ employees will become liable effective 5/15/2026. Employers with 10+ employees will become liable effective 7/15/2026. |
| Oregon | OregonSaves | Employers with 1 or more employees are required to offer a retirement plan. |
| Vermont | VTSaves | Employers with 25 or more employees are required to provide a retirement plan. Effective 1/1/2026 employers with 15 or more employees will be required to comply. Effective 7/1/2026 employers with five or more employees will be required to comply. |
| Virginia | RetirePath | Employers with 25 or more employees that have been in business for at least 2 years. |
| Washington | Washington Small Business Retirement Marketplace | Voluntary - State sponsored retirement marketplace. Effective 7/1/2027 Employers in WA with 10,400+ combined employee hours in prior calendar year, in business 2+ years with physical presence, and no qualified plan offered to employees with 1+ year continuous employment |
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