MarylandSaves, the workplace savings and retirement program created by the state of Maryland, won a 2023 Excellence & Innovation Award from Pensions & Investments Magazine and the Defined Contribution Institutional Investment Association.
Formally known as the Maryland Small Business Retirement Savings Program, MarylandSaves, was among a short list of entries selected as winners for its “new approaches to solving old problems in workplace retirement plans.” More than 2,000 businesses and more than 4,500 Marylanders participate in the program.
Unlike traditional retirement programs, MarylandSaves doesn’t charge businesses to sign up employees; the state provides $300 per year to businesses that do so by waiving a state filing fee. Also unlike virtually all retirement plans, employees in MarylandSaves automatically have a built-in emergency savings fund to handle life’s unforeseen emergencies.
● Helps people get the most out of their Social Security. The program allows savers to use their MarylandSaves account instead of being forced to apply early and getting reduced Social Security benefits.
● Converts automatically to a monthly paycheck. At retirement age, a MarylandSaves account will convert automatically to a monthly check in an amount estimated to last a person’s lifetime.
“MarylandSaves is an advance on traditional retirement plans,” said Chair Josh Gotbaum. “It’s automatic savings from each paycheck, savings that can help with life’s emergencies now and keep helping after people retire. It can help the hundreds of thousands in Maryland who work full-time but have no savings. And we think MarylandSaves can become a model for the rest of America, too.”