BILOXI, Miss. (WLOX) \u2014 Mississippi is introducing a new state-managed retirement savings program aimed at helping private-sector workers, particularly those without access to employer-sponsored plans.<\/p>\n
The \u201cMississippi Work and Save\u201d program was recently signed into law by the governor.<\/p>\n
State Treasurer David McRae said the program is meant for small businesses that do not offer retirement savings plans for employees.<\/p>\n
\u201cSmall businesses are the heart and blood of Mississippi. They\u2019re the heart and blood of small towns and communities,\u201d McRae said. \u201cWe\u2019re trying to allow them to have one more tool in the toolbox to allow them to recruit, retain, or just be competitive to maybe some bigger stores of the same nature who offer these plans.\u201d<\/p>\n
McRae said the state started the plan because 38 percent of Mississippians have zero savings at all, including retirement savings.<\/p>\n
The program is optional for employers. Contributions are deposited into a Roth IRA. Employees may choose to contribute and then select how to invest their funds. The Treasury oversees administration thereafter.<\/p>\n
\u201cWe want to create financial independence and freedom for people when they get older so that they are not dependent upon the state,\u201d McRae said.<\/p>\n
The program is still in its early stages. McRae said the Treasury is working out the kinks and does not have a target launch date yet.<\/p>\n