McFall, Tisdel Introduce MI Secure Retirement Legislation to Help Hard-Working Michiganders Save for Retirement

LANSING, Mich., Dec. 2, 2025 — Today, state Reps. Mike McFall (D-Hazel Park) and Mark Tisdel (R-Rochester Hills) introduced House Bills 5335 and 5336 to establish MI Secure Retirement, a statewide retirement savings program designed to help more Michiganders save for their future — especially those working for small businesses that do not offer retirement benefits. The legislation, reintroduced after gaining bipartisan support, reflects updated stakeholder input and renewed urgency to address Michigan’s growing retirement security gap.

This legislation would expand retirement savings options in Michigan by allowing employees to contribute to an individual retirement account (IRA) directly through payroll deduction, even if their employer does not sponsor a retirement plan. As of 2020, nearly 42% of Michigan’s private-sector workers ages 18 to 64 lacked access to a retirement savings plan at work, leaving hundreds of thousands of residents at risk of financial instability as they age.

“Too many hard-working Michiganders simply do not have access to the tools necessary to build long-term financial security,” McFall said. “By reintroducing this bill, we are reaffirming our commitment to giving every worker — regardless of where they work or the size of their employer — the chance to retire with dignity. This program supports small businesses, helps workers save automatically, and reduces the long-term burden on state safety net programs — all at no cost to employers.”

Seventeen states have enacted laws, with fourteen of those having active programs across the country, commonly known as “secure choice” or “work and save” programs. These programs allow workers without workplace retirement benefits to enroll in IRAs, where a portion of their wages is set aside each pay period. Participants may choose how much to contribute and may opt out at any time. They can also access their savings in cases of financial emergencies without penalty, giving workers both stability and flexibility.

“Every hardworking Michigander deserves the opportunity to save for a secure future,” Tisdel said. “That shouldn’t depend on the size of your employer or where you work. Providing a simple, reliable savings option supports personal responsibility, empowers workers, and builds long-term financial independence. This is a practical step that strengthens Michigan families.”

“Under the Michigan Secure Retirement Savings Program, the 1.5 million Michigan workers without workplace retirement benefits would be able to save for retirement” said John Scott, director of The Pew Charitable Trusts’ retirement savings project. “Small businesses that aren’t able to offer a retirement program would be better able to attract and retain workers. And because workers would be less reliant on the state’s safety net, taxpayers could save as much as $11 billion over the next two decades. This program is a win-win-win for Michigan.”

“Michigan’s population is aging rapidly, yet too many hardworking people still lack a way to save for retirement through their jobs,” said Paula D. Cunningham, AARP Michigan State Director. “Families worry about having enough for the basics — housing, food, healthcare — once they retire. Our polling shows that 70% of Michiganders would take advantage of a workplace retirement savings plan if it were available. This bill gives people a simple, automatic way to save, helping them grow older with security, dignity and peace of mind. We applaud Representatives McFall and Tisdel for taking action to make retirement security a reality for more Michigan families.”

Pew research underscores the cost of inaction: Michigan’s cumulative cost from insufficient retirement savings — primarily Medicaid costs — is projected to total $11.2 billion from 2020 through 2040, with an additional $37.3 billion in federal tax costs during the same period. Without legislative action, these costs will continue to rise as more Michiganders reach retirement age without financial reserves.

MI Secure Retirement provides a practical, bipartisan path forward to give workers the ability to save for retirement, support small businesses, reduce taxpayer costs, and strengthen Michigan’s long-term economic foundation. It would require no employer contributions, no administrative fees, and no fiduciary risk, ensuring that small businesses — which often lack the resources to administer a retirement plan — can provide this benefit at no additional cost.

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