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.
Chasing productivity is one thing, but when you're cutting corners, missing details, and making mistakes, it's time to take a step back.
It is not clear how many employees will be affected, but none of the private partnership’s 20,000 financial advisors will see their jobs at risk.
The historic summer sitting saw a roughly two-thirds pass rate, with most CFP hopefuls falling in the under-40 age group.
"The greed and deception of this Ponzi scheme has resulted in the same way they have throughout history," said Daniel Brubaker, U.S. Postal Inspection Service inspector in charge.
Elsewhere, an advisor formerly with a Commonwealth affiliate firm is launching her own independent practice with an Osaic OSJ.
Stan Gregor, Chairman & CEO of Summit Financial Holdings, explores how RIAs can meet growing demand for family office-style services among mass affluent clients through tax-first planning, technology, and collaboration—positioning firms for long-term success
Chris Vizzi, Co-Founder & Partner of South Coast Investment Advisors, LLC, shares how 2025 estate tax changes—$13.99M per person—offer more than tax savings. Learn how to pass on purpose, values, and vision to unite generations and give wealth lasting meaning
