Across the country, state-sponsored retirement mandates are rolling out at an accelerating pace. While many business owners initially see these programs as a compliance requirement, we see something else entirely: a rare, built-in reason for employers to finally engage in retirement planning conversations. California offered an early look at what happens when a mandate (CalSavers) meets education — and the result was a plethora of opportunity. We spoke with California-based expert Tali Vaughn about what industry professionals learned from that experience, why mandates create such powerful momentum, and how this opportunity is now repeating itself in state after state.
Q: Why do state-sponsored retirement mandates create so much opportunity?
Because they create a clear moment of focus. Many business owners aren’t opposed to offering a retirement plan — it just hasn’t been urgent. A state mandate changes that. Suddenly there’s a deadline, clear expectations, and a reason to ask questions. That attention opens the door to productive conversations about what makes sense for the business long term.
Q: What did California show us about how employers respond once a mandate becomes real?
What surprised many people is that employers didn’t just default to the state option and move on. Instead, they started asking, “What are my choices?” Once they understood that the mandate didn’t eliminate options, many wanted something more flexible or better aligned with their goals. CalSavers wasn’t the end of the conversation — it was the beginning.
Q: Why is education such an important part of this process?
Because most confusion comes from not understanding the difference between a state program and a private retirement plan. When employers are educated — without pressure — they can make informed decisions. Education turns what feels like a requirement into a proactive business choice.
Q: What kinds of questions do business owners ask most often when these programs roll out?
They usually want to know:
- What exactly am I required to do?
- Is the state program my only option?
- What are the advantages of setting up my own plan?
- How much flexibility do I have?
Once those questions are answered clearly, owners feel more confident making a decision instead of just reacting.
Q: Why do so many employers choose to establish their own retirement plan instead of using the state program?
Many employers realize that sponsoring their own plan gives them more flexibility and value. They can decide how and when to contribute, take advantage of tax benefits, and offer a retirement benefit that’s more meaningful for both the business and its employees. Once employers understand they can meet state requirements and create a plan that works harder for them, the decision often becomes much clearer.
Q: What types of businesses tend to be most interested in exploring their own plan?
Typically, growing businesses or owners thinking strategically about retention, tax efficiency, and long-term planning. They see retirement benefits as part of their overall business strategy — not just a compliance requirement.
For some, joining the state program is the right fit (or was at first). Some started with CalSavers to meet the mandate but are now ready to explore sponsoring their own plan.
Another common theme I saw was that business owners simply did not know where to start. They never made offering a retirement plan a priority because they didn’t know who to call or how to begin.
Q: How do these conversations usually progress once they start?
Typically, the business owner received a letter or heard about the mandate and started talk to me (EGPS) because they “had to do something.” That’s where we always began (and where we’ll always begin in any state) — with a discovery call.
We start by asking: What are your goals? Why are we doing this? Do the owners want to participate?
From there, we walk through the options and determine the best fit. It doesn’t have to be a 401(k) — it just needs to be the right retirement plan for that business. The discovery call with the EGPS representative is key, because it ensures the recommendation is based on what’s truly best for the employer — whether that’s the state program or sponsoring their own plan.
Q: What role do industry professionals—like financial advisors, CPAs, payroll providers, consultants, and recordkeepers—play in this process?
They’re often the first point of contact and may be the ones who identify that a business owner needs to address the mandate. Their role is critical in raising awareness and encouraging action.
From there, EGPS steps in as the retirement plan specialist. While partners support the overall relationship, EGPS provides the technical expertise — evaluating options, asking the right discovery questions, and determining whether the state program or a sponsored plan (and what type of sponsored plan) is the better strategic fit.
It’s a collaborative process where we ensure the path forward is aligned with the employer’s long-term goals.
Q: As more states roll out retirement mandates, what should employers keep in mind?
Don’t wait until the last minute. When employers understand their options early, they can plan ahead and make an informed decision — instead of feeling backed into a corner as deadlines approach.
The state program isn’t the only solution. These mandates are meant to expand access to retirement savings, not limit choice. Taking time upfront to explore the right fit leads to better outcomes for both owners and employees.
Q: What’s the biggest takeaway from California that applies to other states?
That mandates create momentum. When employers are given clear information and time to evaluate their options, many choose solutions that go beyond the minimum requirement. California showed that education leads to engagement — and engagement leads to better retirement outcomes.
Looking Ahead
As state-sponsored retirement programs continue to expand nationwide, they’re creating a shared moment of attention across the retirement ecosystem. New requirements naturally lead to questions — and those questions create opportunities for education, collaboration, and better outcomes.
EGPS Can Help
If you’d like to learn more about state-sponsored programs and the options available, fill out the form below and we’ll send you more info.
