Pennsylvania 2025-2026 Regular Session

Pennsylvania House Bill HB1263

Introduced
4/17/25  
Refer
4/17/25  
Refer
5/12/25  
Report Pass
5/13/25  
Engrossed
5/13/25  

Caption

Establishing the Keystone Saves Program, the Keystone Saves Program Fund, the Keystone Saves Administrative Fund and the Keystone Saves Program Advisory Board; and providing for powers and duties of the Treasury Department, for investment and fiduciary responsibilities and for program implementation.

Impact

The implementation of the Keystone Saves Program is expected to have a significant impact on state laws regarding retirement savings. It introduces provisions for automatic enrollment of employees into individual retirement accounts with payroll deductions, thereby broadening access to retirement savings for many workers, particularly those not currently participating in retirement plans. The bill also mandates the development of clear procedures for the management and distribution of retirement funds, aiming to enhance financial literacy and encourage saving behaviors among employees.

Summary

House Bill 1263 establishes the Keystone Saves Program aimed at promoting retirement savings among employees through an automatic payroll deduction program. Funded through individual contributions managed via IRAs, the program is intended to facilitate access to retirement savings in a low-cost manner. It establishes a dedicated program fund managed by the state treasury and funded through participant contributions, which will be used strictly for the benefit of participants and associated expenses. The bill also creates an administrative fund distinct from the program fund to cover program operation costs.

Sentiment

The broader sentiment around HB 1263 is positive, as it aims to address low retirement savings among workers in Pennsylvania. Proponents argue that the program will make saving for retirement more accessible and convenient for employees, particularly those in jobs without traditional retirement plans. However, there are concerns regarding the operational aspects of implementing such a program and ensuring adequate employer compliance, as well as potential costs to employers associated with administrative tasks. The establishment of an advisory board is viewed as a necessary step to guide and improve program efficiency.

Contention

Debate may arise around the bill’s implications for employers, as it requires them to implement payroll deduction systems for their employees. There are restrictions on employer contributions and promotional activities related to the program, which some believe could limit employer engagement. Additionally, as employers are not held liable for the investment choices of participants, there are discussions about the balance of risk in the program and how to protect employees’ retirement savings effectively.

Companion Bills

No companion bills found.

Previously Filed As

PA HB577

Establishing the Keystone Saves Program, the Keystone Saves Program Fund, the Keystone Saves Administrative Fund and the Keystone Saves Program Advisory Board; and providing for powers and duties of the Treasury Department, for investment and fiduciary responsibilities and for program implementation.

PA SB728

Establishing the Keystone Saves Program, the Keystone Saves Program Fund, the Keystone Saves Program Administrative Fund and the Keystone Saves Program Advisory Board; and providing for powers and duties of the Treasury Department and the Department of Labor and Industry, for investment and fiduciary responsibilities and for program implementation.

PA SB1056

In Treasury Department, further providing for investment of moneys; establishing the Keystone Saves Program, the Keystone Saves Program Fund, the Keystone Saves Administrative Fund and the Keystone Saves Program Advisory Board; providing for powers and duties of the Treasury Department, for investment and fiduciary responsibilities and for program implementation; and providing for the electric vehicle road user charge effective date.

PA HB2420

Establishing the Keystone Fresh Program; providing for the Fresh Schools Grant Program, for the Keystone Producer Grant Program, for the Keystone Assistance Grant Program and for the administration of the Keystone Fresh Program by the Department of Education and the Department of Agriculture; and establishing the Keystone Fresh Fund.

PA HB1020

In departmental powers and duties as to supervision, providing for Keystone STARS Program; and, in departmental powers and duties as to licensing, further providing for fees, providing for Keystone STARS Program and further providing for definition.

PA HB2028

In Keystone Telepresence Education Grant Program, further providing for Keystone Telepresence Education Grant Program; and, in disability inclusive curriculum, further providing for department responsibilities.

PA HB1267

In tuition account program, further providing for declaration of policy, for definitions, for Tuition Account Programs Bureau, for powers of department, for Tuition Account Guaranteed Savings Program, for Tuition Account Investment Program, for general provisions governing both tuition account programs and for Federal taxation; establishing the Keystone Scholars Grant Program and the Keystone Scholars Grant Program Account; and making a repeal.

PA HB204

Establishing the Keystone Solvency Operating Study Commission and providing for its powers and duties and for a report.

PA HB1242

Providing for Keystone State Apprenticeship Tax Credit.

PA SB1307

In economic development financing, providing for Keystone National Finance Authority.

Similar Bills

PA SB1056

In Treasury Department, further providing for investment of moneys; establishing the Keystone Saves Program, the Keystone Saves Program Fund, the Keystone Saves Administrative Fund and the Keystone Saves Program Advisory Board; providing for powers and duties of the Treasury Department, for investment and fiduciary responsibilities and for program implementation; and providing for the electric vehicle road user charge effective date.

PA HB577

Establishing the Keystone Saves Program, the Keystone Saves Program Fund, the Keystone Saves Administrative Fund and the Keystone Saves Program Advisory Board; and providing for powers and duties of the Treasury Department, for investment and fiduciary responsibilities and for program implementation.

PA SB728

Establishing the Keystone Saves Program, the Keystone Saves Program Fund, the Keystone Saves Program Administrative Fund and the Keystone Saves Program Advisory Board; and providing for powers and duties of the Treasury Department and the Department of Labor and Industry, for investment and fiduciary responsibilities and for program implementation.

PA HB418

Providing for County Employees' Defined Contribution Plan.

PA HB2507

Providing for County Employees' Defined Contribution Plan.

PA HB754

Further providing for supplemental benefits.

AZ HB2903

Individual savings plan program; appropriation

TX SB1411

Relating to the creation of a state-administered retirement plan; authorizing administrative penalties.