HARRISBURG, Pa. (WHTM) – Two Pennsylvania lawmakers are proposing a state-managed retirement savings plan for people who don’t have employer-sponsored programs to build their nest eggs.
Sen. Art Haywood (D-Philadelphia/Montgomery) says he and Sen. John Eichelberger (R-Blair/Cumberland/Franklin) have a proposal where all employees who do not have a retirement plan at work would be automatically enrolled in the state plan.
Haywood said the state plan would be professionally managed without high fees, and contributions would be deducted from paychecks before taxes. There would be no maximum contribution, and the minimum contribution would be just $25 per month.
He said employees would have investment options, and employers could – but would not be required to – contribute to an employee’s savings.
He said several states have similar plans.