VirginiaSB1492026 Regular SessionSenateWALLET

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

Sponsored By: Jeremy S. McPike (Democratic)

Signed by Governor

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

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

More workers can join retirement savings

The law expands access to Virginia's Commonwealth Savers Plan. Eligible employees must be at least 18, currently employed, and receiving wages; the former 30-hour weekly work requirement is gone. Employees with Virginia taxable income can also join without meeting that eligible-employee definition. They can participate without employer help when their employer does not help them participate. Employers outside the required-participation group can also help their employees join.

More businesses must offer retirement savings

More Virginia nongovernmental businesses must help employees save through the Commonwealth Savers Plan using payroll deductions. The threshold falls from 25 to five eligible employees, counted during the period ending December 31 before the year's open enrollment. The two-year operating requirement and quarterly reporting condition are removed. Businesses with qualified employer retirement plans remain excluded, but an automatic-enrollment payroll deduction IRA alone no longer excludes them. The Board must explore incentives and establish them when appropriate, including help with eligible employers' participation costs or compliance. The law no longer specifies a grant program or limits cost assistance to small businesses; no incentive amount is guaranteed.

Savings tools and federal matches for workers

The Commonwealth Savers Plan Board must develop money-management resources, tools, and incentives that fit the program's purpose. It must also set procedures to receive and credit federal matching contributions to eligible participants' IRAs or qualified retirement savings accounts. Federal law determines who qualifies for a match. This law sets no match amount, creates no separate state contribution, and promises no direct payment for financial education.

Emergency savings option with retirement tradeoffs

The Commonwealth Savers Plan Board must explore a short-term emergency savings option and set requirements when it finds that appropriate. If established, participants choose whether to direct contributions to it, at a level set by the Board. This can help build emergency savings but may reduce money otherwise put toward retirement.

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

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote • 1/29/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • 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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