Nearly 12K Mainers enrolled in new state-sponsored retirement plan

In its first year of operation, Maine’s state-sponsored Roth IRA savings plan has enrolled nearly 12,000 workers.

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The Maine Retirement Investment Trust, or MERIT, was created for the tens of thousands of workers in the state who don’t have access to a retirement savings plan.

Over the past year, eligible employers that have been in business for at least two years and have five or more employees have been registering for MERIT — or have claimed an exemption if they offer a qualifying plan.

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Nearly 2,500 eligible employers have registered with the program throughout 2024, said Beth Bordowitz, executive director of the Maine Retirement Savings board.

Participants are, on average, setting aside just over 5 percent of their paychecks toward their retirement savings.

“Some people will choose a lower amount just to get started and see how it affects their paycheck; and others realize they need to catch up a little bit, and they’ll start higher,” Bordowitz said.

Starting next year, participants who have opted into the program’s “auto-escalation” will see their contributions increase by another 1 percent.

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“This program is meant to help savers not only save easily at the workplace, but also to try to increase that savings over time,” Bordowitz said. “That will take effect in January.”

The trust has more than $8 million in assets so far.

The trust is pleased so far with the uptake from both employers and employees, Bordowitz said. Projections prepared by the Pew Charitable Trusts for the state of Maine predicted that the program would attract about 8,000 workers and $4 million in assets within the first year.

Still, Bordowitz said there are some Maine employers — about 45 percent of eligible businesses — that have not registered yet. Eligible employers that offer their own program have until June 30 to claim an exemption from MERIT. Others must enroll and begin offering the program to their employees by the end of June, or may face a penalty.

This article appears through a media partnership with Maine Public.