Do Small Businesses (Still) Back Mandatory State-Run IRAs?

 A new report suggests that small business owners broadly support state-run IRA programs — with the strongest backing among newer firms.

Or at least they did.

The just-published survey comes from Pew Charitable Trusts, which has previously (and consistently) chronicled support for these programs among small businesses.  This latest was conducted among employers in three states where that type of legislation has been introduced: Massachusetts, Pennsylvania, and Washington. 

According to Pew, support is strong across the board: 84% of respondents in Massachusetts, 76% in Pennsylvania, and 73% in Washington favor establishing an automated savings program (ASP). The report also highlights bipartisan backing, with majorities of Republican, Democratic, and independent business owners expressing support. 

It further finds “statistically significant” support among newer firms, those with moderate revenues, service-sector businesses, and — perhaps not surprisingly — those that do not already offer a retirement plan. 

Or Does It?

For starters, the survey combines those who “strongly” support these programs with those who only “somewhat” support them — flattening what may be meaningful differences in intensity. It also excludes “don’t know” or “not sure” responses altogether, effectively removing uncertainty from the results.

And then there’s the timing — each of these surveys was conducted nearly three years ago, in mid-2023.  It seems odd to republish findings with a headline that says “Most Small Business Owners Support…” as a current sentiment, when it’s predicated on perspectives that predate the implementation of these programs.  Consider that Massachusetts didn’t formally adopt one till 2025, Washington only just has — though it’s not slated to be operational till 2027, and Pennsylvania — well, it’s still on the drawing board. 

And then, among the other findings, they further claim (again from three years ago) that members of the state or local chamber of commerce (79%) and the National Federation of Independent Business (75%) support program adoption – an interesting call-out. 

That’s particularly notable in view of the fact that the National Federation of Independent Business (NFIB) has reported[i] nearly the opposite — most recently in Michigan, where just this month they reported that 87% of its members opposed similar legislation.

So, why “repurpose” three-year-old findings? 

I’ll leave that to your imagination, though it does bring to mind the question: Do small business owners still support these programs? 

The answer, it seems, may depend on who you ask, where you ask, how you ask — and perhaps even …when you ask.

Nevin E. Adams, JD

[i] Michigan’s Small Businesses Caution Against Mandated Retirement Program - NFIB

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