From Augusta: Helping all Maine workers retire with dignity and financial security

Article written by Maine Senator Donna Bailey and posted by Portland Press Herald, April 30, 2025.

As the Senate chair of the Legislature’s Committee on Health Coverage, Insurance and Financial Affairs, I spend a lot of time in Augusta working to help Mainers save money today and in the future. In April, I proudly introduced my bill LD 355, “An Act to Advance the Maine Retirement Savings Program.”

For those who are unfamiliar with the Maine Retirement Savings Board, I think that Ruby Parker, from Cumberland Center, described the program well: “The program is vital to the well-being of Maine citizens. It makes people think about their future and ability to retire; the program is a success.”

There’s also Jessica Linzer, from Cape Elizabeth, who shared some feedback from a small business – a local preschool: “Yes, we have implemented the Maine Retirement Savings Program with our small local preschool staff at my place of work. It is so good. We appreciate the nudge to start this savings (and) I am definitely encouraging the younger staff to opt in and the older staff, me included, are taking advantage of this opportunity.”

In the Legislature, we work hard to ensure that every Mainer for generations to come has the opportunity to live, study, raise a family, work and retire here without worrying about paying their bills or having enough savings for their retirement. When we stand with Maine’s workers, we can ensure they have a decent quality of life. We can also help them achieve financial security and stability, especially later in life.

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That’s where Maine Retirement Savings Program comes in. Its mission is to provide hard-working Mainers who do not receive a retirement plan through their employer with an alternative retirement saving program. It’s an easy, low-cost, trusted retirement plan that benefits Maine workers, employers and taxpayers.

The program first launched in January 2024; since then, it has established over 13,000 individual savings accounts. And that number is growing. For these accounts, over 2,500 Maine employers are participating in Maine Retirement Savings Program, and enrolled Maine workers are collectively saving $11.5 million for their hard-earned, well-deserved retirement. Due to the program’s work, we are addressing the 32% retirement savings gap in Maine.

The Maine Retirement Savings Program provides financial security and stability for Maine workers, especially part-time workers, who otherwise would not have access to a retirement savings plan. It follows workers from job to job, which, in a state like Maine with many part-time and seasonal jobs, is invaluable. It’s also convenient for the workers because they can contribute through payroll deduction. If they choose, they can change their contributions or opt out at any time.

While I was preparing for public hearing on the bill, I came across some testimony from State Treasurer Joe Perry. “For a small employer it is so hard to offer employees any additional benefits or a retirement plan — and they deserve to have a trusted retirement program,” said Perry. “The state makes it easy. Once an account is set up, it mostly takes care of itself, employees are in and they are saving money. I am so delighted that the Maine Retirement Savings Program is available and working for Mainers’ financial security.”

In other words, as Ruby and Treasurer Perry show, the program benefits both employers and employees.

As with any new program, there is an ongoing need to make adjustments and changes so that it is working as well as it can. That’s why in the bill that I sponsored, you’ll find a number of proposed improvements — all of which were made in close collaboration with the program’s Executive Director, Beth Bordowitz.

Next, the committee will have at least one work session for the bill, where we’ll take a closer look at the language and strive to reach unanimous agreement on the best path forward. It’s vital that we do all we can to help Mainers retire with dignity.

If you or your small business participate in the Maine Retirement Savings Program, please feel free to reach out. Besides the work session, the bill will eventually have votes in the House and Senate. Your stories can help persuade my colleagues to support it.