March 19, 2018
Washington Retirement Marketplace offers
small business owners and individuals a simple way to shop for state-verified,
low-fee retirement savings plans
OLYMPIA, WA –
The Washington State Department of Commerce today announced the nation’s first
online portal where businesses and individuals can comparison shop for
low-cost, state-verified retirement savings plans. The Retirement Marketplace at
www.retirementmarketplace.com
was created to help approximately 2 million
Washingtonians who do not have access to retirement savings plans through the
workplace.
About 131,000 Washington businesses, most of them small
businesses, don’t offer retirement plans to employees. Small businesses
struggle to offer retirement savings plans because of their cost and
complexity.
“Access to affordable retirement savings plans should be
available to everyone, especially small businesses and workers in
today’s gig economy. I am proud that Washington state is leading the way with
the nation’s first voluntary, online Retirement Marketplace,” said Gov. Jay
Inslee.
“As a small business owner myself, I firmly believe that many, if not
most, want to offer competitive benefits for employees, but the complexity and
fees can make it cost-prohibitive to do so,” said Sen. Mark Mullet
(D-Issaquah), sponsor of SB 5826 that created the marketplace in 2015. “That’s why my colleagues and I
supported the idea of a small business retirement marketplace. We want to make
it easier to shop for private plans from providers who share our commitment to
help people save for retirement.”
Each plan listed on the Retirement Marketplace meets
strict criteria established by the Washington State Legislature:
- Must first be reviewed by officials at the
Department of Financial Institutions and/or the Office of the Insurance
Commissioner.
- Cannot charge administrative fees to employers.
-
Cannot charge enrollees more than 1 percent in
total annual administrative fees.
- Must go through an annual renewal process to
ensure the plan and provider remain in good standing.
Participation in the Retirement Marketplace is voluntary
for both employers and employees. The Department of Commerce administers the
Retirement Marketplace, but enrollment takes place with the private retirement
plan provider. The state does not
collect personally identifiable information from site users.
People with access to a retirement plan at work are 15
times more likely to save.
“Successful businesses know the value of saving for the
future and helping their employees do the same," said Commerce Director Brian Bonlender. "When people have a solid
financial foundation, it lifts up the entire economy, strengthening communities
by helping more workers participate and prosper.”
“The Retirement Marketplace provides an efficient way for
employers to help their workers save for retirement. It’s easy to sign
up, costs very little to manage and allows employees to carry their savings
from job to job, even if they move out of the state,” said AARP Washington
State Director Doug Shadel. “In addition, the marketplace can help older adults
catch up on saving for retirement. If a 55-year-old started saving now,
they could add thousands of dollars to their retirement accounts in just 10 years.”
Anyone can use the Retirement Marketplace to learn more
about how to make the most of saving for the future. The website offers unique
shopping pathways for businesses and individuals – including self-employed, part-time
and temporary “gig” workers and people with traditional jobs.
The site is launching with five types of 401k plans
offered by Saturna Trust Company,
with no administrative fees charged to Washington employers who access these
plans from the Retirement Marketplace.
The site also lists Roth and traditional IRAs from Finhabits. More plans from other
providers will be added to the Retirement Marketplace in the future.
To learn more about the Retirement Marketplace and find low-cost plans,
please visit www.retirementmarketplace.com.
Contacts:
Penny Thomas, Commerce
Communications, 206-256-6106
Carolyn McKinnon,
Marketplace Director, 360-725-3121
Twitter: @WAStateCommerce
Facebook: facebook.com/wastatecommerce
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