Chandler: Work And Save Act Will Allow Stronger Financial Footing For Retiring New Mexicans

29351879_625787717770441_669171389038214339_oRep. Christine Chandler


Rep. Christine Chandler says House Bill 44, the New Mexico Work and Save Act, which was signed this week by Gov. Michelle Grisham, will place New Mexicans on a stronger financial footing as the prepare for retirement.

The bill creates a voluntary, state-sponsored savings program for small business, self-employed, and nonprofit employees in the private sector. Chandler was one of the sponsors of the bill which addresses the statewide gap in retirement saving by encouraging employers to offer their employees access to a retirement savings plan. Currently, 62 percent of private sector workers in New Mexico work for businesses that do not offer a retirement plan.

“Five other states have enacted similar programs enabling their citizens to benefit from greater security as they age,” Chandler said.

She noted that participation in the program is completely voluntary for both businesses and workers and that workers can choose how much they would like to save from each paycheck.

“People cannot be forced to save because that’s a personal choice, but research has shown that workers are 15 times more likely to save for retirement when they are able to have the savings automatically deducted from their paychecks,” Chandler said.

The web-based retirement plan marketplace will be maintained by the New Mexico Work and Save Board. It will go into effect no later than July 1, 2021.