The reason I like state-mandated IRA programs for employers is because it increases retirement plan coverage and it nudges employers to offer plans of their own since they distrust the government. A recent study by Gusto shows that, concerning the mandated programs in Colorado and Oregon.

In Colorado, lawmakers enacted a requirement that companies with at least five employees participate in a public or private retirement plan starting no later than June 30, 2023. According to Gusto’s data, from one year prior to that date through August 2023, the share of companies with five or more employees offering a 401(k) plan increased to 38%, up from 25.3%.

In Oregon, they have a mandate that requires firms with from one through four employees to participate in an auto-IRA program starting after January 2023. Firms in Oregon with at least five employees were already subject to such a mandate. The share of firms with from one through four employees offering a 401(k) plan rose to 11% in August from 7% in January.