Dear Neighbor,
Did you know that the person who invented the 401k is from Pennsylvania?
At that time, pensions were still fairly common. He intended the 401k to be a supplement to a pension, not to be the only support beyond Social Security. These days, however, pensions are certainly not as common and many workers don’t have a 401k, either. In fact, about 44% of working Pennsylvanians don’t have a retirement plan at all.
To address this, we in the Pennsylvania House just passed a new program called Keystone Saves.
This is essentially a 401k program, but administered by the PA Treasury instead of an employer. It would offer automatic deposits into a retirement account for anyone who doesn't have access to an employer-based plan. That means you would always have this account, even if you switch jobs. The Treasury would work with private money managers to ensure a good rate of return on your savings.
I was proud to vote for this bill because as always, I do everything in my power to support workers and create more ways for people to retire with dignity.