An Act to Advance the Maine Retirement Savings Program
Maine Legislature, Session 132, LD 0355
Sponsors: BAILEY, MASTRACCIO, DAUGHTRY
Amends: 5 MRSA §171, 5 MRSA §173, 5 MRSA §179

Legislative Document
No. 355
S.P. 141
In Senate, February 3, 2025
An Act to Advance the Maine Retirement Savings Program
Received by the Secretary of the Senate on January 30, 2025.  Referred to the Committee 
on Health Coverage, Insurance and Financial Services pursuant to Joint Rule 308.2 and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BAILEY of York.
Cosponsored by Representative MASTRACCIO of Sanford and
Senators: BALDACCI of Penobscot, President DAUGHTRY of Cumberland, ROTUNDO of 
Androscoggin, Representatives: ARFORD of Brunswick, BOYER of Cape Elizabeth, 
CLUCHEY of Bowdoinham, TERRY of Gorham.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §171, sub-§3, as enacted by PL 2021, c. 356, §1, is amended to 
read:
3.  Covered employer.  "Covered employer" means a person or entity engaged in a 
business, industry, profession, trade or other enterprise or that otherwise hires employees 
in the State, whether for profit or not for profit, that has not offered to its employees, 
effective in form or operation at any time within the current calendar year or 2 preceding 
calendar years, a specified tax-favored retirement plan.  "Covered employer" does not 
include:
A.  The Federal Government, the State or any other state, any county or municipal 
corporation or any of the State's or any other state's units or instrumentalities; or
B.  An employer that has not been in business during both the current calendar year 
and the preceding calendar year.
If an employer does not maintain a specified tax-favored retirement plan for a portion of a 
calendar year ending on or after the effective date of this chapter, but does adopt such a 
plan for the remainder of that calendar year, the employer is not a covered employer for the 
remainder of the year.
Sec. 2.  5 MRSA §173, sub-§3, as repealed and replaced by PL 2023, c. 167, §6, is 
amended to read:
3.  Implementation.    The board may implement the program in stages, which may 
include a pilot program and phasing in the program based on the size number of employers 
a covered employer's employees, or other factors.  A covered employer on the start date of 
the program shall offer the program to its covered employees no later than December 31, 
2024.
A covered employer with fewer than 5 3 employees is not required to offer the program to 
its covered employees but may offer the program to its employees at the option of the 
employer and in accordance with rules established by the board.  An employer that becomes 
a covered employer after the start date of the program shall offer the program to covered 
employees within the time frame established by the board.
Sec. 3.  5 MRSA §173, sub-§4, ¶A, as amended by PL 2023, c. 167, §7, is further 
amended by amending subparagraph (1) to read:
(1)  From Starting July 1, 2025 to June 30, 2026, in the first year of the failure to 
enroll, the maximum penalty per covered employee is $20;
Sec. 4.  5 MRSA §173, sub-§4, ¶A, as amended by PL 2023, c. 167, §7, is further 
amended by amending subparagraph (2) to read:
(2)  From Starting July 1, 2026 to June 30, 2027, in the 2nd year of the failure to 
enroll, the maximum penalty per covered employee is $50; and
Sec. 5.  5 MRSA §173, sub-§4, ¶A, as amended by PL 2023, c. 167, §7, is further 
amended by amending subparagraph (4) to read:
(4)  On or after July 1, 2027, in the 3rd year of the failure to enroll, the maximum 
penalty per covered employee is $100.
Sec. 6.  5 MRSA §179, sub-§2, as amended by PL 2023, c. 167, §13, is further 
amended to read:
2.  Submission of report.  Beginning February July 1, 2026 and annually thereafter, 
the board shall submit to the Governor, the Treasurer of State and the Legislature an audited 
financial report, prepared in accordance with generally accepted accounting principles, 
detailing the activities, operations, receipts and expenditures of the program and board 
during the preceding calendar year. The report must include the number of participants, the 
investment options and their rates of return and other information regarding the program 
and must also include projected activities of the program for the current calendar year.
Sec. 7.  Transfers.  Notwithstanding any provision of law to the contrary, the State 
Controller shall transfer from the unappropriated surplus of the General Fund to the Maine 
Retirement Savings Program Enterprise Fund $350,000 on or before June 30, 2026 and 
$275,000 on or before June 30, 2027.
Sec. 8.  Appropriations and allocations.  The following appropriations and 
allocations are made.
MAINE RETIREMENT SAVINGS BOARD
Maine Retirement Savings Program Z326
Initiative: Allocates funds to the Maine Retirement Savings Program Enterprise Fund to be 
used in accordance with the Maine Revised Statutes, Title 5, chapter 7-A.
MAINE RETIREMENT SAVINGS PROGRAM 
ENTERPRISE FUND
2025-26
2026-27
All Other
$350,000
$275,000
__________
__________
MAINE RETIREMENT SAVINGS PROGRAM 
ENTERPRISE FUND TOTAL
$350,000
$275,000
SUMMARY
This bill makes the following changes to the Maine Retirement Savings Program.
1.  It changes the definition of "covered employer" so that it includes all employers 
who hire employees.
2.  It allows covered employers who may have offered a workplace retirement plan 
within the past 2 years to participate in the program.
3.  It allows the Maine Retirement Savings Board to phase in the program based on the 
number of employees rather than based on the size of employers as provided in current law.
4.  For employers who become required to participate in the program after the start date 
of the program, it clarifies that the employer is required to participate in the program within 
a time frame established by the board.
5.  It clarifies that covered employers that fail to enroll are subject to an annually 
increasing penalty.
6.  It changes when the Maine Retirement Savings Board is required to submit an 
audited financial report to the Governor, the Treasurer of State and the Legislature from 
beginning February 1, 2026 and annually thereafter to beginning July 1, 2026 and annually 
thereafter.
7.  It allocates funds to the Maine Retirement Savings Program Enterprise Fund.