Philadelphia voters will decide on May 19th whether to authorize PhillySaves, an auto-IRA program for workers who lack employer retirement plans.
The outcome could shift payroll and compliance expectations for small housing operators and other covered employers.
Ballot question outlines auto-IRA for uncovered workers
Employees in the private or nonprofit sectors at Philadelphia-based businesses with at least one employee and at least two years of operation would be covered, provided their employer does not offer a retirement plan.
Independent contractors and sole proprietors are excluded, though lawmakers may expand eligibility later.
At launch, the default employee contribution would be 3% to 6%, with opt-out and rate-change options.
Roth IRAs would be the default, with the ability to choose a traditional IRA or contribute to both.
The ballot question seeks authorization for the city’s proposed retirement plan.
Governance, oversight and rollout
City Council advanced enabling legislation and a charter change so the retirement program will go to voters for approval on the May ballot.
Earlier in the process, a Council committee advanced potential referendum questions, including the retirement measure.
The Philadelphia Retirement Savings Board would include nine members.
Four would be appointed by the mayor and four by the Council president, each naming an employer representative, an employee representative, a retiree advocate and an investment expert, plus one appointed by the City Controller.
Plans would likely be managed by a third-party firm overseen by the board.
Legislation sets a deadline to begin accepting contributions no later than July 2027.
The board may roll out the program in phases to support effective implementation.
Employer impact for property managers and small operators
Employers would not bear plan costs, but covered firms would need to facilitate payroll deductions, process opt-outs and handle contribution changes.
These requirements intersect with HR systems, onboarding, and staff communication at managed properties.
Accounts would follow workers if they change jobs, reducing administrative re-enrollment when employees move between sites.
Scale and equity context
Approximately 208,000 private sector workers could gain access to IRAs through the program.
An August analysis found the median income for older households in Philadelphia is just over $39,000, and $30,931 for older Black households, underscoring retirement security gaps.
Seventeen states have set up similar programs, and AARP reports more than 1 million private sector workers enrolled in state-run savings initiatives.
What changes if voters approve
If approved, officials say Philadelphia would be the first city to authorize an automatic IRA program.
The charter change would create the Philadelphia Retirement Savings Board to oversee implementation, vendor management and compliance standards.
With contributions required to begin by July 2027, owners and operators face a defined horizon for integrating payroll and recordkeeping processes once rules are finalized.