Virginia legislators approved a private-sector retirement savings program.
The Virginia General Assembly on Feb. 27 approved legislation creating an automatic enrollment payroll deduction individual retirement account through the Virginia College Savings Plan, Virginia 529, that will be administered by a separate board.
The legislation, expected to be signed by Gov. Ralph Northam in April, calls for the VirginiaSaves program to start enrolling eligible employers July 1, 2023.
Participation would be mandatory for employers with at least 25 full-time employees without access to a workplace retirement plan. Employees, whose benefits would be portable to eligible employers, could opt out of the plan.
The bill's sponsor, Del. Luke Torian, D-Prince William, said that 45% of Virginia workers do not have access to a workplace retirement savings plan, and the new program offers one at no cost and no employer liability. "This is an opportunity for more Virginia workers to build long-term savings not tied to a single employer. VirginiaSaves will be a crucial wealth-building mechanism," Mr. Torian said in a statement.
