How Can Employers Operating in Multiple States Ensure Compliance with State Mandates?

Q: We are a healthcare entity with locations in multiple states that sponsors a single ERISA 403(b) plan for all employees. Do we need to be concerned at all about state-sponsored retirement plans for employees not covered by an employer-sponsored retirement plan?

Kimberly Boberg, Kelly Geloneck, Emily Gerard and David Levine, with Groom Law Group, and Michael A. Webb, senior financial adviser at CAPTRUST, answer:

A: Your concern should be whether you are properly communicating with the states in which your employees work that sponsor such programs, so that they know that your employees are, in fact, covered under an employer-sponsored retirement plan. Some of these states may require you to file an exemption from being covered under the state plan because you already offer a retirement plan for your employees.

There are websites that provide comprehensive information on all the states that sponsor such programs, such as this website from the Georgetown University Center for Retirement Initiatives. The Experts recommend you start here and then evaluate what, if anything, you need to do.

NOTE: This feature is to provide general information only, does not constitute legal advice and cannot be used or substituted for legal or tax advice.

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