PLANSPONSOR - May - June 2023 - 8
UPFRONT
Pulling Together for the Goal?
S
tates that have implemented retirement
savings programs for private sector
employees are not crowding out employerprovided
plans as some in the industry
have feared, new research from the Pew
Charitable Trusts shows.
The introduction of state-run plans
may, rather, be prompting private sector
employers to create their first plan and/or
retain an existing one, says a Pew report
based on the Department of Labor's latest
data on the subject.
Businesses in California, Illinois and
Oregon-the first states to launch a retirement
program for the private sector-
continued to create new plans in 2021
at rates even surpassing those in states
without such a program, Pew found.
" Evidence from California, Oregon
and Illinois continues to indicate that [state]
automated savings programs complement
the private sector market for retirement
plans such as employer-sponsored
8 PLANSPONSOR.COM May - June 2023
401(k)s, " Pew's article on the research states.
" Several years of data now suggest
that
states with automated savings programs
can help fill the gap for employers who
may not be ready or able to provide their
own plans-without hindering the private
market in those states. "
The California, Illinois and Oregon
plans have been operating for at least four
years. Oregon first enrolled workers in
2017, Illinois in 2018 and California in
2019. The three programs are automatic
individual retirement account programs.
Employers in those states may choose to
either enroll their workers in the government-built
initiative or exempt themselves
by adopting their own plan.
Pew examined the effects the state
programs have had on private market
plans and whether eligible businesses
would terminate their existing plan as
a result. The increase in the shares of
private employer plans created in each
Art by Aart-Jan Venema
state, pre- and post-program-launch,
align with national trends and, in some
cases, prove larger, Pew found. The share
of plans created in the U.S.-excluding
California-increased from an average of
6.4% before 2019 to 7.3% from 2019 to
2021, the Pew analysis showed.
In the three states examined, the
of private
rate
employer plan introductions
was consistently higher each
year after the state launched its savings
program.
In California,
the share of
new plans grew from an average of 8.1%
between 2013 and 2018 to an average of
9.4% between 2019 and 2021, during
which CalSavers was enrolling workers.
In Illinois, the share of new plans
grew from an average of 5.3% between 2013
and 2017 to 6.2% from 2018 to 2021, with
Illinois Secure Choice enrolling savers.
In Oregon, the share of new private
employer plans increased from an
average of 6.7% between 2013 and 2016
http://www.PLANSPONSOR.COM
PLANSPONSOR - May - June 2023
Table of Contents for the Digital Edition of PLANSPONSOR - May - June 2023
INSIGHTS
PARTICIPANT ANALYSIS
RULES & REGULATIONS
UPFRONT
Role Call
A New Breed Of TDFs
2023 Plan Sponsor Of The Year Finalists
2023 HSA Conference
A Personalized Approach
The New Wave
FIDUCIARY FORUM
INSIDE ANGLE
PLAN PROFILE
PLANSPONSOR - May - June 2023 - Cover1
PLANSPONSOR - May - June 2023 - Cover2
PLANSPONSOR - May - June 2023 - 1
PLANSPONSOR - May - June 2023 - INSIGHTS
PLANSPONSOR - May - June 2023 - 3
PLANSPONSOR - May - June 2023 - PARTICIPANT ANALYSIS
PLANSPONSOR - May - June 2023 - 5
PLANSPONSOR - May - June 2023 - RULES & REGULATIONS
PLANSPONSOR - May - June 2023 - 7
PLANSPONSOR - May - June 2023 - UPFRONT
PLANSPONSOR - May - June 2023 - 9
PLANSPONSOR - May - June 2023 - 10
PLANSPONSOR - May - June 2023 - 11
PLANSPONSOR - May - June 2023 - 12
PLANSPONSOR - May - June 2023 - 13
PLANSPONSOR - May - June 2023 - Role Call
PLANSPONSOR - May - June 2023 - 15
PLANSPONSOR - May - June 2023 - 16
PLANSPONSOR - May - June 2023 - 17
PLANSPONSOR - May - June 2023 - A New Breed Of TDFs
PLANSPONSOR - May - June 2023 - 19
PLANSPONSOR - May - June 2023 - 20
PLANSPONSOR - May - June 2023 - 21
PLANSPONSOR - May - June 2023 - 2023 Plan Sponsor Of The Year Finalists
PLANSPONSOR - May - June 2023 - 23
PLANSPONSOR - May - June 2023 - 24
PLANSPONSOR - May - June 2023 - 25
PLANSPONSOR - May - June 2023 - 26
PLANSPONSOR - May - June 2023 - 27
PLANSPONSOR - May - June 2023 - 28
PLANSPONSOR - May - June 2023 - 29
PLANSPONSOR - May - June 2023 - 30
PLANSPONSOR - May - June 2023 - 2023 HSA Conference
PLANSPONSOR - May - June 2023 - 32
PLANSPONSOR - May - June 2023 - 33
PLANSPONSOR - May - June 2023 - A Personalized Approach
PLANSPONSOR - May - June 2023 - 35
PLANSPONSOR - May - June 2023 - The New Wave
PLANSPONSOR - May - June 2023 - 37
PLANSPONSOR - May - June 2023 - FIDUCIARY FORUM
PLANSPONSOR - May - June 2023 - INSIDE ANGLE
PLANSPONSOR - May - June 2023 - PLAN PROFILE
PLANSPONSOR - May - June 2023 - Cover3
PLANSPONSOR - May - June 2023 - Cover4
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