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Keystone Saves Coalition

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Employer-sponsored retirement savings plans can help workers secure a sound financial future.

But in Pennsylvania, where small businesses often cannot afford to offer retirement benefits, as many as 2 million private sector workers lack access to a workplace retirement plan. Business owners need a basic, no-cost retirement savings option until they can provide their own plan.

Helping more Pennsylvania residents save will also reduce the burden on taxpayers. Workers’ inability to save will leave many households at risk of having insufficient savings in retirement and is now projected to cost the commonwealth $17.8 billion in additional fiscal costs through 2035.

Pennsylvania legislators introduced the Keystone Saves Program Act (H.B. 577) to address this growing fiscal shock. The bipartisan retirement savings bill would expand the ability of people to save when they don’t have an employer-provided retirement plan. The bill would:

  1. Give businesses a no-cost retirement benefit for their workers.
  2. Help hard-working Pennsylvanians secure their financial future.
  3. Reduce the state’s $17.8 billion fiscal burden from low retirement savings.

The Keystone Saves program is intended for businesses without a retirement plan and would rely on voluntary regular payroll contributions to fund individual retirement accounts (IRAs). Keystone Saves would be a public-private partnership in which IRAs are professionally managed by a third-party financial firm overseen by the state. Administration and investment fees would be kept low through the economies of scale produced by a statewide program. 

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Pennsylvania State Capitol, the seat of government for the U.S. state of Pennsylvania, located in Harrisburg
Pennsylvania State Capitol, the seat of government for the U.S. state of Pennsylvania, located in Harrisburg
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In The News

No Retirement Plan at Work? An Automated Savings Program Can Fix That
Commuters arrive into the Oculus station and mall in Manhattan on November 17, 2022 in New York City.
Commuters arrive into the Oculus station and mall in Manhattan on November 17, 2022 in New York City.
Article

New State Retirement Plan Prompts Private Adoption

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Article

State automated savings programs are designed to help millions of private sector workers gain access to retirement savings at work.

State Automated Savings Programs
State Automated Savings Programs

State Automated Savings Programs

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Tens of millions of Americans don’t have access to workplace retirement benefits, threatening their future financial security and burdening state budgets. In the last decade more than a dozen states and cities passed legislation establishing automated savings programs designed to help workers save for retirement. Also known as auto-IRAs, work and save, and secure choice, these programs allow small businesses to recruit and retain workers by offering a no-cost retirement benefit. And when workers are more financially secure, they are less reliant on taxpayer-funded government programs, better able to withstand financial shocks, and more likely to save for their future.