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VirginiaSaves Heads to Governor’s Desk

Legislation

Virginia appears to be poised to become the next state to offer a state-run retirement plan for employees whose employers do not offer one. Legislation that would create one in the Old Dominion is headed for the desk of Gov. Ralph Northam (D), who has indicated that he will sign it into law.  

The final language of the measure includes an amendment supported by the American Retirement Association that would allow for private auto-IRA programs to meet the retirement plan coverage retirement in the bill.

HB 2174, the measure that would create VirginiaSaves, passed the House of Delegates in a 56-44 vote on Jan. 26. On Feb. 16, the Virginia Senate Finance and Appropriations Committee voted 12-1 (with two abstentions) to endorse a substitute amendment which contained changes to the original House version, including a successful effort by the American Retirement Association’s government affairs team to clarify the types of retirement plan products Virginia employers can use to meet the new requirement to include automatic enrollment payroll deduction IRA programs offered by the private sector. The substitute amendment changed the definition of what constitutes an eligible employer from employers with five or more employees to employers with 25 or more employees who do not already have a retirement plan.  

On Feb. 27 the Assembly passed the measure in its final form. Northam may sign, veto or amend it.