Harrisburg – September 6, 2016 – Sen. Art Haywood (Philadelphia/Montgomery) released the following statement announcing bipartisan legislation to create a new type of retirement savings plan. Haywood and Sen. John Eichelberger (R-Blair) are co-sponsoring the new initiative:
“Senator John Eichelberger and I have joined together to propose a new plan to increase retirement savings for Pennsylvania workers. Our legislation would establish a way for individuals working in jobs without a retirement plan to save in a new state-managed program.
“Unfortunately, one in every three American employees has nothing saved for retirement. In 2012, the Employee Benefit Research Institute projected that almost half of current workers are at risk of having insufficient income to meet basic expenses in retirement. Many older adults run out of money during retirement.
“Under our proposal, all employees who do not have a retirement plan at work are automatically enrolled in the state plan. The state plan will be professionally managed without the high fees that erode savings. Contributions will be pre-tax, with no maximum contribution. The minimum contribution would be just $25 per month. Individuals will be given a choice of investment options.
“The plan will not compete with existing private employer pension plans. Under our initiative, employers could — but are not required to — contribute to an employee’s savings.
“Senator Eichelberger and I are demonstrating that Democrats and Republicans do work together. Several states have similar plans.
“As the fourth-oldest state in the nation with a growing senior population, it is critical that we encourage Pennsylvanians to save for retirement before it’s too late.”