Bill > HB418

This bill establishes a new County Employees' Defined Contribution Plan for county workers, creating a retirement savings program where employees and employers contribute to individual investment accounts. The plan allows mandatory employee contributions through payroll deductions (which will be "picked up" by the county and treated as employer contributions for tax purposes) and optional voluntary contributions. Participants can withdraw their vested contributions upon terminating county service, with distribution options including lump sum payments or potentially purchasing an annuity. The plan is designed to comply with Internal Revenue Code requirements for governmental retirement plans, with the county retirement board responsible for administering the trust and managing investment options. Key provisions include immediate vesting of participant contributions, provisions for beneficiary payments in case of death, and flexibility for the board to establish detailed procedures for contributions, investments, and distributions. The plan protects the county from investment liability, with all fees and administrative costs primarily borne by participants through account assessments, though the county will fund initial establishment costs. The legislation takes effect 60 days after passage and aims to provide county employees with a modern, defined contribution retirement savings vehicle.

Government Affairs

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=418