State Rep. Mike Hanna, D-Clinton/Centre, and Rep. Mike Driscoll, D-Phila., are preparing to reintroduce legislation that would establish the Keystone Retirement Security Program.
The legislation, which will be similar to last session’s H.B. 2396, would provide private sector employees without access to an employer-sponsored retirement plan the opportunity to save for retirement through automatic payroll deduction. Every participant would have the opportunity to set the amount deducted from each paycheck, up to a certain percentage.
“Retirement security is a serious issue and we as legislators have a responsibility to do what is in the best interest of all Pennsylvanians,” Hanna said. “Ignoring this issue would have devastating effects on both future retirees and the financial well-being of the state.”
Currently, there are over 2 million workers in the state without access to this type of retirement savings account. Hanna says that is unacceptable.
Under the Hanna-Driscoll plan, employers with five or more employees that don’t already offer a retirement plan would be required to offer their employees enrollment in the Keystone Retirement Security Program. Workers could decline if they choose; otherwise, a small portion of their pay would be automatically deducted and deposited into an account with the state Treasurer’s Office. Treasury would manage the accounts similar to the way it currently manages the PA529 college savings accounts. This legislation would offer portable retirement savings accounts to nearly every employee in Pennsylvania with absolutely no cost to taxpayers.
“Representative Driscoll and I believe that people who work hard their entire lives deserve to retire financially secure and with dignity,” Hanna said. “So we are determined to ensure that every Pennsylvanian has the opportunity to save for a secure retirement.”
Hanna added that the plans also would not place any additional administrative or financial burden on private employers in Pennsylvania. Because of federal guidelines, employer contributions would not be required or permitted to an employee’s account under this plan.