Home / Business and Economy / Philly Votes Yes to Automatic Worker Savings
Philly Votes Yes to Automatic Worker Savings
20 May
Summary
- Philly voters overwhelmingly approved a measure for a city-run worker savings program.
- Employees without workplace retirement plans will be automatically enrolled in IRAs.
- The program, named PhillySaves, is set to launch by July 2027.
Philadelphia is set to launch its pioneering city-run working savings program, PhillySaves, following a decisive voter endorsement of a related ballot measure. Preliminary results indicate robust support, with 78% of voters backing the initiative. This program will automatically enroll employees of businesses that do not provide retirement benefits into individual retirement accounts (IRAs).
The city estimates that approximately 208,000 workers will benefit from this program. PhillySaves is designed to be voluntary, allowing employees to opt out. The program is scheduled to become operational by July 2027. This initiative mirrors auto-IRA systems already in place in 17 other states nationwide.
PhillySaves aims to provide a crucial safety net for workers, particularly those in industries with higher turnover or for small businesses that may lack resources for retirement plan administration. The program will be established at no direct cost to employers.
