Utah Retirement Plan Access: New Bill Helps Small Business Employees Save

Many Utahns, including workers in St. George, struggle to save for retirement. A new state bill seeks to help small businesses offer retirement plans to their employees.

Lawmakers say a growing share of workers in Utah do not have access to employer-provided retirement savings plans. This puts added pressure on individuals and state support systems as residents approach retirement.

Retirement Savings Gap in Utah

Estimates from state financial offices reveal that hundreds of thousands of Utah workers lack access to retirement programs through their employer. Small businesses often cannot afford traditional retirement plans, contributing to the gap.

Nationally, nearly 47% of private-sector workers do not have access to an employer retirement plan. In Utah, that number is about 51%, according to studies referenced by lawmakers.

Many Utahns, including those working in hospitality, construction, restaurants, and retail, may not have a structured way to save for retirement while they build their careers.

Lawmakers Propose Retirement Plan Exchange

To address this, Rep. Joe Elison, R-Toquerville, and Rep. Jason Thompson, R-River Heights, are sponsoring House Bill 250 (HB250). The bill would help small businesses offer retirement savings options.

The state would create a Utah Retirement Plan Exchange, a marketplace where private retirement providers can offer plans in one place. Small businesses could choose whether to participate. Employees could enroll in a plan through their employer.

Elison said, “We want employees to be able to start salary deduction into their retirement savings and build wealth for their future.”

The plan is optional for businesses. It is designed to lower barriers that have kept many employers from offering retirement benefits, including cost, complexity, and lack of administrative support.

Why This Matters to Small Employers

Small business owners often struggle to set up retirement plans. Suzanne Millard, a Utah business owner, said HB250 would make it easier and less expensive for employees to save for retirement.

Rep. Thompson added that private retirement providers often avoid small businesses because they do not generate as much revenue as large companies. The exchange would improve access and simplify options.

Utah State Treasurer Marlo Oaks said, “This bill is designed to address a market gap, not mandate a solution. We offer a way for employers to help their employees save without the state managing the assets.”

Impact on Utah Workers and St. George Employees

Supporters say HB250 could help employees in St. George and across Utah build retirement savings earlier instead of relying only on Social Security.

The federal government offers a treasury match incentive that can match up to 50% of contributions. Expanding access through HB250 allows more workers to benefit.

Millard said the exchange could also help small businesses retain employees by offering benefits similar to larger companies.

Growing Support and Optional Participation

The bill has backing from lawmakers like Sen. Lincoln Fillmore, R-South Jordan, who said it encourages business participation without costing taxpayers money. HB250 is meant to encourage retirement savings while allowing employers to choose whether to join.

Looking Ahead

As Utah grows, ensuring workers can save for retirement is increasingly important. Many St. George residents work for small businesses. Expanding access to retirement plans could have a meaningful impact on long-term financial security.

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