"Under legislation approved by the council, the program would be authorized to begin operations if voters approve an independent governing board through a public referendum scheduled for May 2026, local outlet WHYY News reported. If implemented, PhillySaves would target an estimated 208,000 workers in Philadelphia who are currently without access to a workplace retirement plan. Employers participating in the program would be able to enroll eligible employees at no cost with the city overseeing the selection of a third-party financial firm to professionally manage"
"PhillySaves would operate as an automatic individual retirement account program, commonly known as an auto IRA. Workers would be automatically enrolled in an IRA and could opt out or adjust their contribution levels at any time. Accounts would be portable and tied to individual workers rather than employers, allowing savings to continue as employees change jobs. Businesses would not be required to contribute funds and would face no direct costs beyond facilitating payroll deductions."
PhillySaves is a city-sponsored automated retirement savings program proposed to reach private-sector workers whose employers do not offer retirement benefits, targeting about 208,000 workers. The program would automatically enroll eligible employees in individual retirement accounts while allowing opt-out and contribution adjustments. Accounts would be portable and tied to workers, not employers, and employers would not be required to contribute or incur direct costs beyond facilitating payroll deductions. The city would select a third-party financial firm to manage accounts and oversee an independent governing board, which must be approved by voters in a May 2026 referendum. Similar programs in other jurisdictions have accumulated billions in savings.
Read at www.housingwire.com
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