An Act To Allow Employees Covered Under The Maine Retirement Savings Program To Elect To Enroll And Unenroll In A Payroll Deduction For An Individual Retirement Account

132nd Legislature (2025-2026) Introduced by Trey Stewart

Allows MRSP employees to opt in or out of payroll deductions to fund an IRA, shifting from opt-out to opt-in and assigning implementation to the MRSB.

Placed in the Legislative Files. (DEAD)

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Title and purpose

An Act to Allow Employees Covered Under The Maine Retirement Savings Program To Elect To Enroll And Unenroll In A Payroll Deduction For An Individual Retirement Account.

The bill would allow employees who are covered by the Maine Retirement Savings Program (MRSP) to opt in to and opt out of payroll deductions that fund an Individual Retirement Account (IRA).

In practice, this expands employee choice by shifting the MRSP framework from an opt-out model to an opt-in model for related payroll deductions aimed at IRAs.

What the bill would change (Key provisions)

Create or enable a process by which MRSP-covered employees may elect to enroll in payroll deductions to fund an IRA.

Allow employees to unenroll from such payroll deductions.

Implement changes consistent with moving from an opt-out system to an opt-in system for MRSP-related payroll deductions.

The bill would place the administrative responsibility for implementing this opt-in structure on the Maine Retirement Savings Board (MRSB) and related program operations.

Note: Specific, line-item provisions (e.g., eligibility details, contribution limits, timing, and notice requirements) are not provided in the materials available here. The fiscal notes focus on the administrative cost of transitioning MRSP from opt-out to opt-in.

Fiscal impact (as identified in the fiscal notes)

The primary fiscal effect is the cost to change MRSP from opt-out to opt-in.

The exact amount cannot be estimated at this time, but MRSP indicated that any such costs would be absorbed within existing budgeted resources.

The two fiscal notes (Document 3 and Document 4) mirror this conclusion, even after amendments, affirming that the program change would be absorbed within current resources.

Who would be affected

Employees who are enrolled in or eligible for the Maine Retirement Savings Program.

Employers and payroll administrators that administer MRSP deductions and any IRA payroll deduction arrangements.

The Maine Retirement Savings Board (MRSB), which would be responsible for implementing the opt-in process.

Procedural history and status

Introduced: March 25, 2025.

Committee: Health Coverage, Insurance and Financial Services.

Reported out: May 6, 2025 (ONTP/OTP-AM noted in the actions).

Subsequent actions in June 2025 show political committee activity (Majority Ought Not to Pass reports and roll calls).

Final status: Placed in the Legislative Files as "DEAD" on June 10, 2025, with the bill having been debated and rejected at the committee and legislative stages.

Why this matters (context and potential impact)

A shift from opt-out to opt-in for MRSP-related payroll deductions could affect participation rates, administrative processes, and the ease with which employees save for retirement via IRAs.

The fiscal notes indicate the transition would be administratively burdensome but actionable within current resources, avoiding additional appropriations.

The ultimate policy effect would depend on implementation details (e.g., how easy enrollment/unenrollment is, notice requirements, and whether such payroll deductions tie to specific IRA types or accounts).

If you’d like, I can compare this bill to existing MRSP rules or outline potential administrative workflows for implementing an opt-in IRA payroll deduction.

Bill