Virginia is the latest state to move forward with a public retirement plan for private-sector workers, as one chamber of its legislature last week approved a bill to establish VirginiaSaves.
The program would be similar to automatic IRAs used in several states, including those of Oregon, Illinois and California. Virginia’s House of Delegates passed the measure last Tuesday by a vote of 56 to 44, according to a release from Delegate Luke Torian, who sponsored the bill.
The measure has since been introduced in the state Senate, where it was referred to committee. Virginia Gov. Ralph Northam has voiced support for the legislation, according to Torian’s office.
Under the proposed law, the Virginia College Saving Plan board would build and administer the auto-IRA program. The 529 board would be responsible for drawing up guidelines, including default contribution rates for workers and steps for dealing with noncompliance, according to the state legislature’s site.
About 45% of Virginia’s workforce does not have access to an employer-sponsored retirement plan, Torian’s office said in the release.
The proposed Virginia program, like other auto-IRA systems, would require employers with at least five workers to participate unless they already offer their workers a retirement plan. Employees would be able to opt out.
Enrollment in the program would begin by July 1, 2023, at the latest, according to the bill.
Numerous other states have enacted auto-IRA legislation, including Colorado, Connecticut, Maryland and New Jersey, according to Georgetown University’s Center for Retirement Initiatives. Seattle, Wash., has also passed legislation.
The three autos-IRAs programs that are up and running manage a total of about $128 million, Georgetown CRI data show. OregonSaves, which was the first to go live, represented about $84.7 million in nearly 88,000 accounts at the end of 2020. Illinois’ program, the second to launch, had $47 million in 80,000 accounts. And California’s CalSavers program, which last year began phasing in companies with at least 100 workers, represented more than $28 million among 96,000 participants.
So far, about a third of eligible employees have chosen to opt out of those programs, according to Georgetown CRI.
Richardson firm joins as Kestra builds out its platform with new leadership, technology, and expanded planning tools.
Retiring RIA seller David Laidlaw alleges the Carnegie valued his stake on $11.7 million EBITA while pitching potential buyers on $21.3 million.
New tool gives RIAs and family offices AI help vetting private market deals, with some users reportedly halving review time.
Investors got projected returns dressed up as real ones, SEC says
Parents must still act to get the $1,000 federal seed and employer contributions, giving financial advisors a role in the rollout.
As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
