HARRISBURG – Reps. Tracy Pennycuick (R-Montgomery) and Mike Driscoll (D-Philadelphia) have introduced legislation that would allow Pennsylvania workers who currently have no opportunity to save for retirement at their place of employment the ability to join a voluntary employee retirement savings program.
The program is called Keystone Saves, and it would allow employees to contribute to an IRA through an automatic payroll deduction.
The program is designed to maximize employee choice and control while minimizing any burden on employers. Under House Bill 2156
, employees could:
• Set their own contribution levels.
• Increase or decrease their deductions.
• Make investment choices.
• Leave the program at any time.
• Opt out altogether.
Employees could also choose to use account and investment options selected by the program.
“This program is flexible to fit the needs of the employee,” said Pennycuick. “Accounts are portable so employees can continue to save if they change jobs, wish to rollover their Keystone Saves account into another retirement plan, or even move their account to a private account manager. It is the employee’s choice!”
“This is something I believe wholeheartedly in, a true plan for the future of working Pennsylvanians,” Driscoll said. “It provides access to a retirement plan without burdening employers. This voluntary program would expand access to private retirement savings plans to the over 2 million Pennsylvanians who currently do not have access through an employer-sponsored retirement plan. This is a bipartisan collaboration that would help any Pennsylvania resident that is unprepared for the financial challenges of retirement and provide them with the opportunity to enjoy their golden years.”
For employers, Keystone Saves would provide an easy system that enables participation at no financial cost, little additional time and protection from any legal liabilities.
“This program will provide businesses with a valuable resource to attract and retain employees and create a path to financial success for more than 2 million Pennsylvanians without access to a retirement savings program. This mutually beneficial solution enables us to stave off the fiscal challenges ahead instead of waiting for the costs to pile up with taxpayers on the hook to pay for short-term fixes,” according to Liz Ferry, vice president, state legislative affairs for The Chamber of Commerce for Greater Philadelphia.
Pennycuick and Driscoll added, “Without proactive long-term solutions like Keystone Saves, Pennsylvania taxpayers will ultimately be on the hook for rising costs that retirees can’t cover. We need to equip individuals with the tools for financial success in order to avoid further reliance on government-funded programs.”
House Bill 2156 now goes to the House Commerce Committee for consideration.
Representative Tracy Pennycuick
147th Legislative District
Pennsylvania House of Representatives
Media Contact: Tricia Lehman