Hanna-Driscoll plan would offer Pennsylvanians a way to save for a more secure retirement
HARRISBURG, Jan. 26 – State Rep. Mike Driscoll, D-Phila., and Rep. Mike Hanna, D-Clinton/Centre, 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. Each participant in the program would have the opportunity to set the amount deducted from each paycheck, up until a certain percentage.
“Retirement security is a serious issue for the state, especially as a large number of residents begin to retire without the savings needed to meet their expenses,” Driscoll said. “Ignoring this ‘Silver Tsunami’ would have devastating effects on both future retirees and the financial well-being of the state as a whole. Currently, there are over 2 million workers in the state without access to this type of retirement savings account, which is simply unacceptable.”
Under the Hanna-Driscoll plan, employers with five or more employees that don't already offer a retirement plan would be required to enroll their employees 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 manages the TAP 529 college savings accounts.
“As a new session gets underway, Representative Hanna and I remain focused on making sure that every Pennsylvanian has the opportunity to save for a secure retirement,” Driscoll said. “This legislation would offer portable retirement savings accounts to nearly every employee in Pennsylvania with no cost to taxpayers.”
Driscoll added that the plans would also not place any additional administrative or financial burden on private employers in Pennsylvania. No employer contributions would be required or permitted to an employee's account.
Driscoll has sought a legislative study on the concept since early 2015.