HARRISBURG, Pa. - More than 2 million Pennsylvanians don't have access to a retirement savings plan. A new piece of legislation, called Keystone Saves, wants to change that.
"This is a program that will actually help people prepare for their own retirement," said Republican State Rep. Gary Day, who is the chairman of the Aging Committee.
It's a state-sponsored retirement plan. Employers do a payroll deduction into the IRA and a count of those participating. The treasury and a third party handle the rest.
"Many people have access to retirement plans to put their own money away with their employer, but many people do not have that access or when you switch employers, you end up with multiple accounts," Day said.
"Pennsylvanians are getting older, they are obviously retiring when they get older, and we want to make sure people who retire can have dignity and financial security," said State Rep. Mike Schlossberg.
Schlossberg says it will save a lot of money down the line.
"If we can make sure people retire securely, then we can make sure they're not relying on government programs later down the line in order to support themselves," Schlossberg said.
The AARP calls it "crucial legislation." The Greater Lehigh Valley Chamber of Commerce agrees.
"The labor shortage is a huge issue, and this could be an added incentive for people to return to work. However, we do need to make sure there is no undue burden on businesses," said Brittney Waylen, Vice President of Government Affairs for the Greater Lehigh Valley Chamber of Commerce.
Businesses already with retirement plans, those with fewer than five employees, and those open for fewer than 15 months would be exempt.
"I'm hoping we come up with a plan that I can recommend absolutely," Day said.
If the legislation passes, it will still take four years to phase in.