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

LD 1283 modifies Maine's retirement savings program to require employers to automatically enroll eligible employees in a payroll deduction IRA (retirement account), allowing them to opt out at any time. Employees would start contributing 5% of their salary by default but can adjust this rate or withdraw entirely. Employers face annual penalties of up to $100 per unenrolled employee if they fail to enroll workers without reasonable cause, after three reminders. The bill applies to all Maine employers covered under the retirement savings program and mandates annual account updates for participants.