VirginiaSB1492026 Regular SessionSenateWALLET

State-facilitated IRA savings program; various changes to the program.

Sponsored By: Jeremy S. McPike (Democratic)

Became Law

Summary

State-facilitated IRA savings program. Makes various changes to the state-facilitated IRA savings program administered by the Commonwealth Savers Plan. For purposes of defining an eligible employer, the bill (i) reduces the minimum number of eligible employees an organization must have in its employ from 25 to five for the period ending December 31 of the preceding calendar year prior to the program's open enrollment period for that calendar year and (ii) clarifies that such term does not include employers offering and sponsoring a qualified retirement plan, including 401(k) plans. The bill also removes the requirement that an eligible employee, for purposes of the program, works at least 30 hours a week and adds the requirement that participating individuals enrolling in the program independent of an employment relationship with an eligible employer be at least 18 years of age. The bill also expands the powers and duties of the governing board of the Commonwealth Savers Plan to include (a) procedures for reenrollment of participating employees and participating individuals; (b) allowing program participants to invest in a lifetime income option; (c) establishing the resources, tools, and incentives to promote greater financial education and literacy; (d) procedures for receiving and crediting federal matching contributions to an IRA or qualified retirement savings account; and (e) exploring and establishing incentives that encourage participation by eligible employers and eligible employees, including initiatives that incentivize compliance or that defray any costs incurred by an eligible employer to facilitate participation.The bill also requires eligible employers that withhold a program contribution from a participating employee's wages to remit such contribution not later than 10 business days following the date upon which such withholding was made and notes that eligible employers who fail to submit contributions to the program may be in violation of law and incur penalties. This bill is identical to HB 176.

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 0 costs, 4 mixed.

Default IRA settings and emergency savings

The Board sets the default IRA type (Roth or traditional), default contribution and automatic escalation rates, and the investment menu, including a default fund and a lifetime‑income option. Contribution limits follow IRS rules. The Board sets fees and must give clear information on investments, fees, and the tax and withdrawal effects of IRAs. The Board may add an optional short‑term emergency savings feature so you can direct part of your payroll to a liquid account.

How workers enroll and who can join

You are automatically enrolled unless you opt out as the Board prescribes. You can stop participation at any time. If your employer does not facilitate, you and self‑employed people can enroll on your own under Board rules. You must have Virginia taxable income to participate.

Timely deposits and penalties for employers

When an employer withholds your contribution, it must send it as soon as possible and no later than 10 business days. Failing to remit on time can trigger federal and state labor‑law penalties. The Board may impose administrative penalties up to $200 per eligible employee each year and will set enforcement and education procedures. When allowed by federal law, the Program accepts federal matching funds and credits them to participant accounts. The Board may offer grants and incentives to help small employers comply and defray costs.

Which employers must facilitate worker IRAs

Eligible employers are nongovernment businesses with 25 or more eligible employees reported for the Dec. 31 quarter and the prior three quarters, have operated at least two years, and do not sponsor a qualifying plan. Enrollment starts July 1, 2023, or soon after. The Board sets the rollout and must give reasonable notice if dates change. Eligible employers must facilitate payroll deductions. Employers may set up their own qualified plan at any time and then leave the Program. Employers that are not required may still help employees enroll if it does not create an ERISA-covered plan.

Worker-funded IRAs, not employer plans

The Program is designed so it is not an ERISA‑covered employer plan. Employers may not contribute to or promote the Program. Participating employers are not fiduciaries and are not liable for an employee’s choice to join or for investment results.

Board runs program and safeguards assets

The Board administers the Program and invests program money. It appoints an advisory committee. The Board can hire contractors and buy insurance to protect program assets and Board and committee members. All state agencies must help by sharing data and technical support when allowed. The Program is exempt from subsection C of § 40.1‑29.

Sponsors & Cosponsors

Sponsor

  • Jeremy S. McPike

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 212 • No: 0

House vote 2/25/2026

Passed House Block Vote

Yes: 97 • No: 0

House vote 2/20/2026

Reported from Appropriations

Yes: 22 • No: 0

Senate vote 2/2/2026

Read third time and passed Senate Block Vote

Yes: 40 • No: 0

Senate vote 1/30/2026

Engrossed by Senate Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 1/29/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 1/29/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote 1/28/2026

Reported from Finance and Appropriations

Yes: 13 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0085)

    4/6/2026Governor
  2. Approved by Governor-Chapter 85 (effective 7/1/2026)

    4/6/2026Governor
  3. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/10/2026Governor
  4. Enrolled Bill communicated to Governor on March 10, 2026

    3/10/2026Senate
  5. Fiscal Impact Statement from Department of Planning and Budget (SB149)

    2/27/2026Senate
  6. Bill text as passed Senate and House (SB149ER)

    2/27/2026Senate
  7. Enrolled

    2/27/2026Senate
  8. Signed by President

    2/27/2026Senate
  9. Signed by Speaker

    2/27/2026House
  10. Passed House Block Vote (97-Y 0-N 0-A)

    2/25/2026House
  11. Read third time

    2/25/2026House
  12. Read second time

    2/24/2026House
  13. Reported from Appropriations (22-Y 0-N)

    2/20/2026House
  14. Assigned HAPP sub: General Government and Capital Outlay

    2/18/2026House
  15. Referred to Committee on Appropriations

    2/5/2026House
  16. Read first time

    2/5/2026House
  17. Placed on Calendar

    2/5/2026House
  18. Read third time and passed Senate Block Vote (40-Y 0-N 0-A)

    2/2/2026Senate
  19. Engrossed by Senate Block Vote (Voice Vote)

    1/30/2026Senate
  20. Read second time

    1/30/2026Senate
  21. Passed by for the day Block Vote (Voice Vote)

    1/29/2026Senate
  22. Constitutional reading dispensed Block Vote (on 1st reading) (40-Y 0-N 0-A)

    1/29/2026Senate
  23. Passed by for the day

    1/29/2026Senate
  24. Rules suspended

    1/29/2026Senate
  25. Reported from Finance and Appropriations (13-Y 0-N)

    1/28/2026Senate

Bill Text

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