50-State Guide to State-Required Retirement Plans and Benefits for Your Practice

Retirement is expensive, and many workers are unprepared. That’s why in 17 states and counting, many (if not most) employers must now register with their state-required retirement program, or set up one of their own. It’s not as tough as it sounds, and it probably isn’t as expensive as you think, but it makes a big difference. Retirement is one of those make-or-break benefits for many candidates, and your existing team will definitely appreciate your commitment to their future. 

If you’re in one of the states with laws in place now, you can join your state-sponsored plan, or set up your own qualifying retirement benefits. Either way, it’s great news for your employees, and you’ll stay legally compliant. Check which state-required retirement plans are active now, or coming soon to your state.

Why Offering Retirement Plans Benefit Everyone

Your retirement plan might be selling your practice someday, but what about your employees? Like the vast majority of American workers, they rely on their employer (that’s you) to help build a retirement nest egg. 

• It can cost upwards of a million dollars to retire
• 46% of Americans have no retirement savings at all
• Employees who work for small businesses are less likely to have retirement benefits
• 93% of jobseekers would turn down a job offer that didn’t have retirement

… And that’s why states are now setting up retirement programs. 

Those plans tend to be low- or no-cost to employers, but they’re enough to give your employees a much-needed leg up on their future.

If your state doesn’t have a plan, but you aren’t offering independent retirement benefits because they sound too expensive, we get it. But the cost of not offering these high-value benefits adds up even faster, and the turnover problem doesn’t seem to be going away. Recruiting, onboarding, and training a new nurse or hygienist can cost much more than the expense of providing benefits.

Good retirement benefits could be the difference between keeping your best people and an expensive new hire process. Your employees are already planning their future. Wouldn’t you want them to envision spending their future at your practice?

What Do State-Required Retirement Plans Entail?

Most states that have set up their own retirement plans have made it super easy and affordable for employers to offer long-term benefits. They’re employee-funded with automatic enrollment, so all you’ll have to do is set it up. Skip this step, though, and you could be responsible for costly penalties.

401(k)s and Private Retirement Plans Count

States that offer a state-run retirement program will accept eligible independent retirement plans, too. So if you already offer a 401(k), you may be eligible to opt out of the state setup. A quality independent retirement plan satisfies the state’s mandate, and you get to keep the customizable benefits that fit your practice. Private retirement plans tend to be a little more thorough than the state version, so it may be worth setting up a 401(k) if you’re on the fence. 

Not Required to Participate? You Can If You Want

Most states also allow employers to voluntarily participate in their state-sponsored plans. So let’s say you’re in New Jersey, and you only have 8 employees, but you want to sign up for RetireReady NJ. You can! It’s cost-effective, gets you ahead of compliance, and it shows your employees that you’re being proactive about their benefits. Each state’s rules may vary, so always check first. Super stuck? Not sure where to start? We’re happy to help.

State-by-State Guide to State-Required Retirement Laws

HR for Health Keeps You Compliant with State-Required Retirement Laws

Although there are only 17 states on the list right now, nearly all of them have had proposed legislation. No matter which state you’re in, HR for Health keeps tabs on what laws are live, which are upcoming, and which ones are relevant to you. 

We’ll be updating this page as new laws roll out, but if you’re using HR for Health, you’ll already know what’s going on in your state. We won’t let you miss your state’s retirement plan enrollment deadline. If you’d rather set up an independent plan, we’ve got you covered there too. Contact HR for Health to explore your options.