Bill > HB1263

This bill establishes the Keystone Saves Program, a state-run retirement savings program designed to help employees in Pennsylvania save for retirement through an automatic enrollment Individual Retirement Account (IRA) system. The program will be administered by the Pennsylvania Treasury Department and will automatically enroll covered employees (those 18 and older working for employers with at least five employees) in a Roth IRA with payroll deductions, unless they choose to opt out. Employees can select their contribution rate (defaulting to 4% if no rate is chosen) and investment options, with a maximum contribution of 10% of gross wages or the IRS annual contribution limit. The program will offer multiple investment options, including life-cycle funds, equity and bond index funds, and a capital preservation fund, with a default investment option for those who do not make a selection. Employers are prohibited from contributing to the accounts or endorsing the program, and participation is mandatory for covered employers based on a phased timeline depending on company size, with the largest employers (100+ employees) required to register within 24 months of the Act's effective date. The bill also establishes a Keystone Saves Program Advisory Board to oversee the program, creates separate administrative and program funds, and includes provisions for protecting participant data, managing investment risks, and providing regular reporting to participants, employers, and government officials.

Budget and Finance, Business and Industry

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=1263