Pennsylvania 2023-2024 Regular Session

Pennsylvania Senate Bill SB728

Introduced
6/2/23  

Caption

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.

Impact

The enactment of SB728 is expected to have significant implications for state laws governing retirement savings and employee benefits. It requires participating employers to automatically enroll employees in the program while allowing them the choice to opt out. This is anticipated to increase participation rates in retirement savings programs across the state, potentially leading to improved financial security for residents as they prepare for retirement. Additionally, the act establishes a dedicated fund to manage contributions, which safeguards participants' retirement assets from state claims.

Summary

Senate Bill 728, known as the Keystone Saves Program Act, establishes a program aimed at enhancing retirement savings through automatic enrollment in payroll deduction Individual Retirement Accounts (IRAs) for employees in Pennsylvania. The program is designed to facilitate greater savings opportunities for working individuals, especially those who may not have access to employer-sponsored retirement plans. The bill mandates employers to offer the program and allows employees to opt in or out, making it easier for them to save for retirement while promoting financial literacy regarding retirement savings options.

Sentiment

The reception of SB728 appears to be largely positive, particularly from those who advocate for enhanced employee retirement savings and financial security. Supporters argue that the program addresses a critical gap in saving opportunities for workers, particularly among lower-income individuals who may face barriers in accessing traditional retirement plans. However, there may be some concerns among employers regarding the administrative burden of implementing the program and compliance with its requirements. Overall, the sentiment is one of progressive change aimed at supporting a more financially secure workforce.

Contention

Notable points of contention include the responsibilities placed on employers, who must administer payroll deductions and ensure compliance with program guidelines. Critics may argue that this could create added complexity for small businesses. Additionally, scrutiny could arise concerning the handling of funds and the long-term investment strategies for participants, particularly in ensuring that they meet the needs and expectations of employees without exposing them to unnecessary risks. The establishment of the Keystone Saves Program Advisory Board will be crucial in overseeing these aspects and addressing stakeholder concerns as they arise.

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 HB1263

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 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 HB891

Providing for Keystone State Apprenticeship Tax Credit; establishing the Keystone State Apprenticeship Tax Credit Program; and imposing duties on the Department of Labor and Industry.

PA HB1600

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 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 HB1625

Establishing the Keystone Artificial Intelligence Authority within the Department of Community and Economic Development; providing for the duties of authority and its governing board; providing for duties of other entities; establishing the Artificial Intelligence Permitting System Pilot Program within the Department of Environmental Protection; establishing the Keystone Artificial Intelligence Development Fund; and providing for sovereign immunity.

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 HB1263

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 HB418

Providing for County Employees' Defined Contribution Plan.

PA HB2507

Providing for County Employees' Defined Contribution Plan.

PA HB754

Further providing for supplemental benefits.

TX HB2996

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

TX SB1537

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