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Pennsylvania House of Representatives
04/19/2024 04:48 PM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20150&cosponId=17428
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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2015 - 2016 Regular Session

MEMORANDUM

Posted: February 17, 2015 11:36 AM
From: Representative Michael J. Driscoll
To: All House members
Subject: Study Independently Administered IRAs for Private Sector Employees
 
In the near future, I will be introducing a resolution that will direct the Legislative Budget and Finance Committee to conduct a study and issue a report on the feasibility and cost effectiveness of implementing an independent board charged with administering voluntary Independent Retirement Accounts (IRA) for private sector employees.

According to a 2014 Federal Reserve study, 30.9% of Americans do not have retirement savings or a pension. In addition, a recent report from the Trustees of the Social Security trust fund indicated that the fund will run out of cash in 2033. Both of these facts are very alarming and represent a future cliff for state budgets should retirement savings go unaddressed. Any strain on Pennsylvania’s programs in the future could mean additional hardship and difficult decisions for generations to come.

In order to determine the best course of action to address retirement security, I will be introducing a resolution directing the Legislative Budget and Finance Committee (LBFC) to conduct a study of Illinois Secure Choice Savings Program, the California Secure Choice Retirement Savings Trust and any similar state-administered private sector retirement savings program. In addition, the LBFC will issue a report that:
  • Assesses the feasibility of implementing an independently-administered private sector retirement savings program;
  • Determines the impact of IRS rules and regulations on such a program; and
  • Provides recommendations including, but not limited to, potential legislation and possible appropriations necessary to implement a program.
In recent years, seventeen states- Arizona, California, Colorado, Connecticut, Illinois, Indiana, Maine, Maryland, Massachusetts, Minnesota, Nebraska, Ohio, Oregon, Vermont, Washington, West Virginia, Wisconsin- have considered establishing voluntary savings plans for private-sector employees. I believe Pennsylvania should study Illinois’ and California’s statutes and similar proposals in order to determine how to address the retirement security problem and to ensure that our constituents have options that will prepare them for their golden years.

As fiscal stewards of the Commonwealth, it is incumbent upon us to protect the financial viability of the Commonwealth for current and future generations. Please join me in co-sponsoring this important legislation.

Introduced as HR220