Philadelphia Voters Approve City-Run Retirement Savings Program: How It Would Work

Philadelphia Voters Approve City-Run Retirement Savings Program: How It Would Work reports that on May 19, 2026, more than three-quarters of voters (78.4%) approved a ballot measure creating the Philadelphia Retirement Savings Board. The board will implement PhillySaves, intended for workers at Philadelphia employers that do not already offer a pension, 401(k), or similar plan. Program backers estimate it could reach more than 200,000 residents currently without access to employer-sponsored retirement options. If rules, vendors, and systems are finalized, PhillySaves is scheduled to begin by July 1, 2027. Under the approved framework, eligible businesses or nonprofits must have operated for at least two years and employ at least one worker, while sole proprietors and the self-employed are excluded for now. Workers are automatically enrolled with a default contribution rate of 3% to 6% unless they opt out, choosing between traditional or Roth IRA accounts that remain portable across jobs, with employers only handling enrollment and payroll deductions.