Maine Workers Can Access Retirement Planning Through Statewide Program

Planning for retirement can be a terrifying prospect for many working families. Between housing, healthcare, and child care costs, plus loans to pay back, retirement savings may feel out of reach. Nearly half of all Maine workers in the private sector lack an employer-sponsored retirement savings plan such as a 401(k).

But thanks to new legislation, working Mainers have another way to save for retirement. LD 1622, aka the “Work and Save” Law, establishes a Maine Retirement Saving Program open to workers without an employer-sponsored retirement plan and those who are self-employed. A portion of one’s paycheck can be set aside for retirement in a state-run Roth IRA fund overseen by the Office of the Treasurer. (Unlike a traditional IRA, Roth IRAs tax deposits now so you don’t pay fees when you withdraw your money later.) This fund is in the employee’s name and, once created, follows the employee if and when they change jobs.

Senate Majority Leader Eloise Vitelli is the lead sponsor of this law. She wanted to provide people with the tools to be secure financially well into their golden years.

”The whole premise here is to make it simple and automatic, so that in fact people will start to save,” Vitelli told WABI. “They’ll start to see that they’re building a cushion for their future, and that in itself will provide them incentive to keep going.”

In a recent op-ed for the Portland Press Herald, Vitelli explained that the benefits of the program will extend to all Mainers, not just those who use the program:

“Right now, because so many retired Mainers have such a small fixed income, they rely on social safety nets, including state welfare programs, just to make ends meet…if retired Mainers had just $1,000 more in income from savings per year, the state would save a total $15.6 million per year by 2032. That means more Maine retirees will be living their later years in dignity, and the program will simultaneously take pressure off Maine taxpayers.”

The program would also support our state’s small businesses, many of which lack the resources to provide their staff with a retirement fund.

Mainers for Working Families is a proud supporter of this law, and we’re grateful to Senator Vitelli for her efforts to ease the difficult transition into retirement.

Maine’s Vaccination Milestone: 1 Million Vaccinated!

Earlier this month, Maine reached a major milestone in the fight against COVID-19. Over 1 million Mainers are now fully vaccinated, meaning our state has the fourth-highest vaccination rate in the country at 68 percent (including children under 12).

Addressing this major accomplishment, Governor Mills said, “I applaud the more than one million Maine people who have rolled up their sleeves to turn the tide on this pandemic. That such a significant number of folks have gotten vaccinated is a testament to the willingness of Maine people to step up and do what’s right for themselves, their neighbors, and their communities.”

While this is excellent news, we’re still not out of the woods where the coronavirus is concerned. Over 1,000 Mainers have lost their lives to COVID-19, and nearly 800 new cases were found on Wednesday alone. With a 7-day new case average of 393, we remain in the midst of a spike that cannot be ignored, particularly as the weather starts getting colder and more people move indoors.

The fact remains that the best way to protect yourself and your loved ones is to get vaccinated. According to the U.S. Department of Health and Human Services, vaccinations prevented over 800 cases and 100 deaths among Maine’s senior citizens between January and May. Wearing a mask is also important, regardless of vaccination status.

Still on the fence about getting vaccinated? Read our vaccine FAQ here.

A New Public Health Insurance Option for Mainers

Last week, Governor Mills announced that Maine will become one of the latest states to offer a statewide health insurance market under the Affordable Care Act. We’re here to answer your question about how it works and what it can do for you.

How do I enroll?

The state’s health insurance market will be accessible through CoverME.org. From November 1 through January 15, Mainers can compare affordable healthcare plans to see which coverage options work best for each individual, as well as determine whether they can get a lower-cost healthcare plan. CoverME.gov can also help determine if you or your family qualify for free or low-cost coverage from MaineCare or CubCare (the Children’s Health Insurance Program).

Is this an improvement over how we’ve gotten health insurance in the past?

Absolutely! For those who don’t qualify for state-sponsored health insurance like MaineCare or CubCare, CoverME gives Mainers an alternative to employer-sponsored healthcare that’s better tailored to the needs of our state. After millions lost their health insurance during the COVID-19 pandemic, this option can help the uninsured get the care they need.

What does this mean for Maine’s working families?

Access to a statewide health insurance market fills many of the coverage gaps in our current system. For people who don’t qualify for care under MaineCare or the ACA, or whose families aren’t covered under employer-specific insurance, CoverME is a great option for affordable healthcare.

Is there any financial assistance available?

Yes. Thanks to funding from the American Rescue Plan (the federal government’s COVID-19 stimulus package for 2021), 80 percent of Mainers who choose coverage through CoverME will have access to some degree of financial aid. One in four Mainers using CoverME will be able to get health insurance for just $10 a month!

CoverME represents a massive step towards guaranteeing affordable healthcare for all Mainers. We applaud Governor Mills for her leadership and commitment to keeping Maine’s families safe and healthy.