Gov. Mills signs Sen. Vitelli bill to advance the Maine Retirement Savings Program

Posted: August 10, 2023 | Senator Vitelli

AUGUSTA ­­— On July 25, Gov. Janet Mills held a ceremonial bill signing for legislation sponsored by Sen. Eloise Vitelli, D-Arrowsic. LD 1082, “An Act to Advance the Maine Retirement Savings Program,” will build on the Maine Retirement Savings Program, with the ultimate goal of making it easier for businesses to sign up.

“Since its creation, Executive Director Beth Bordowitz and members of the board have been working diligently to launch the program, and they have been meeting important milestones,” said Sen. Vitelli. “Although we originally hoped that the program would be ready this year, it became clear that we needed more time. LD 1082 extends the start date for the Maine Retirement Savings Program so that we have a smaller pilot program ready this fall. Then, we will phase in the rest of the program through January 2026. It is critical that this program succeed so that all Mainers can have a financially secure and stable retirement. I am grateful for all of the work Beth has put into this program, and I thank the Governor for supporting this bill – and helping Maine workers easily manage their savings and retirement.”

The Maine Retirement Savings Program was created in 2021 by LD 1622, the Work and Save bill, also sponsored by Sen. Vitelli. The program is a way for working Mainers to contribute to a Roth IRA directly from their paycheck. Employers who don’t offer their own retirement savings plans will facilitate a deduction for their employees straight from their paycheck. These employers cannot contribute any funds to the plan. The deducted funds go into a Roth IRA, following participants from job to job until that person is ready to retire. At least six other states have similar programs. More information on Maine’s program can be found at mainesaves.org.

According to data from AARP, approximately 46 percent of private-sector workers in Maine — about 235,000 people — do not have access to an employer-sponsored retirement savings program. Nationally, 26 percent of working-age adults say they have no retirement savings at all.

Gov. Mills (center) ceremonially signs LD 1082 into law with Sen. Vitelli, Executive Director Beth Bordowitz, Treasurer Henry Beck and advocates from AARP looking on.

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