Are employers obligated to provide employees with pensions?

In Maryland, employers are not generally obligated to provide employees with pensions. However, there are a few exceptions to this rule. For example, the Maryland Code dictates that employers of 25 or more employees are required to provide a retirement plan for employees that meets certain criteria. In addition, certain public employers, such as the state of Maryland, may require employers to provide employee pensions. Even if employers are not legally obligated to provide employee pensions, some employers elect to do so voluntarily. Employers may set up pension plans for their employees in order to attract and retain high-quality employees. In this case, pensions may be a form of compensation offered in lieu of higher wages or other benefits. Pension plans also offer several advantages to employers. For example, pension plans can reduce the employer’s tax burden as contributions to the plan are generally tax-deductible. Employers can also use pension plans as a form of employee retention as employees are more likely to stay with a company that provides pension plans. Overall, employers are generally not obligated to provide employees with pensions. However, certain employers may choose to do so voluntarily, either to attract and retain quality employees or to benefit from the tax advantages of pension plans.

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Are employers obligated to provide employees with pensions?

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