What’s Happening With Retirement Security in PA
It takes legislation to unroll and provide effective oversight of a retirement security program in Pennsylvania. Thankfully, we’ve had several lawmakers step to the plate with their ideas, and we are hoping for more.
One of the first supporters of a retirement security plan? Lock Haven state Rep. Mike Hanna. He joined with fellow Democratic Rep. Mike Driscoll of Philadelphia to offer House Bill 465, which, if enacted, would establish the Keystone Retirement Security program. This could be your gateway to a happier and more prosperous retirement.
In the Pennsylvania Senate, Pat Browne, a Republican representing Lehigh County, has joined Art Haywood, a Philadelphia Democrat, to bring a retirement savings proposal of their own.
The Hanna/Driscoll proposal would provide private-sector employees, who do not have access to an employer-sponsored retirement plan, with the opportunity to save for retirement through automatic payroll deductions.
The Browne/Haywood idea would present a similar strategy and employee contributions would go into individual accounts pre-tax with a minimum contribution of just $25.
What is good about each of the proposals, if they become law, is the Pennsylvania Treasury would operate the retirement security program that is adopted. No one in state government would have access to your money at any time in any year. Only. You.
Federal lawmakers threw a fly in the retirement security ointment when they voted to block a rule that allowed states like ours to create these automatic savings vehicles.
This won’t stop us, however. Like California, Oregon, New Jersey and other states that are working to bring retirement security savings programs to their residents, Pennsylvania is, too. Oregon, in fact, is getting closer to accepting the first dollar of employee investment into its program.