If you don’t have a retirement plan through your job, you’re not alone.
Nearly 300,000 workers in Nevada lack access to a workplace retirement plan, according to the most recent estimate from AARP Nevada. But that could soon change.
During the 2023 legislative session, Gov. Joe Lombardo signed Senate Bill 305, which created a new state-facilitated retirement savings program. It’s called the Nevada Employee Savings Trust — or NEST — and it officially launches July 1.
Private businesses and nonprofit organizations in Nevada that have been operating for at least three years and have six or more employees must comply with the new law by Sept. 1.
The program doesn’t use state funds and comes at no cost to employers. The state handles the administrative side, while employees are automatically enrolled—but they can opt out at any time.
Nevada State Treasurer Zach Conine called the program an important step toward improving financial security for workers across the state.
“When Nevadans can't save for the future, that creates a scenario where the government is going to need to provide more services in order to keep people safe and alive, and frankly, we don't have the tax base or the money for that,” Conine said.
“We want to make sure Nevadans have access to as much opportunity and (as many) tools to be successful as possible.”
Eligible employers should have already received an email from the state requesting the necessary information to begin the setup process. After an employer registers online, the state will contact their employees directly to help set up individual accounts.
Employees can choose how much they want to contribute to their retirement savings.
A key point: The law doesn’t require businesses to use the state’s retirement plan—it just requires them to offer some kind of retirement plan. If a business doesn’t already provide one, then they must use the state’s option.
That option is an automatic individual retirement account or auto-IRA. However, businesses can also explore other retirement plan options available in the market.
The Vegas Chamber—the largest business support organization in Nevada—offers its own retirement plan that member businesses can provide to employees.
President and CEO of the chamber, Mary Beth Sewald, said the law’s built-in flexibility could be a major benefit to Nevada’s workforce and employers alike.
“It's just so important to be able to not only attract good talent to work at your business, but (also) to retain them. And benefits like a retirement plan are one of the key ways to do that,” Sewald said.
Sewald also noted that the law will help many small businesses establish retirement plans—something they might not have been able to do otherwise due to limited resources.
“It might be expensive, and it takes a lot of administrative time to do these things, but through the Vegas Chamber’s plan and the state's plan, employers have to do virtually nothing to get things started.”
Guests: Zach Conine, Nevada State Treasurer; Mary Beth Sewald, President and CEO, Vegas Chamber
