Pennsylvania's House of Representatives passed a bill that would create the Keystone Saves Program, a state-run automatic IRA program.
The bill, passed by the House on May 24 by a 106-95 vote, establishes the auto-IRA program for people who work for companies with five employees or more that do not currently sponsor a retirement plan.
The Keystone Saves Program Fund would be established as a separate fund overseen by the state treasury, and the program's board would consist of the governor and state treasurer (or their designees), as well as four members that must have some knowledge, skill and expertise in financial planning and retirement savings: one member appointed by the president pro tempore of the state Senate, one by the speaker of the House of Representatives, and one member each by the minority leaders of the House and Senate.
The bill also establish that at a minimum, the program must include an equity index fund, bond index fund, capital preservation fund and target-date fund lineup as investment options. The program is free to add more investment options.
The bill calls for the implementation of the program no later than 24 months than the effective date of the bill. Employers' deadlines to enter the program will be staggered based on their numbers of employees.
State Representative Kyle J. Mullins, sponsor of the bill, could not be immediately reached for further information.
