No matter how far away retirement may be on your horizon, workers want to be assured they have a clear path to economic security.
For employees working in the private sector without an employer-sponsored retirement savings plan, that can be problematic.
In Virginia, that equals 45%, or more than 1.2 million people, without a retirement savings plan at work.
That’s why RetirePath Virginia, a state-facilitated retirement savings program managed by Virginia529, was created. The program enables Virginians without access to a retirement plan at work the option to save a portion of their pay to a Roth individual retirement account. State lawmakers passed legislation in 2021 directing Virginia529 to establish the program.
The first notifications will be sent out on June 20 to more than 8,000 eligible Virginia businesses — those in operation for two or more years with 25 or more employees.
Employers will receive a series of emails and letters that include a unique access code, registration deadline and instructions. Registration and additional information can be found at retirepathva.com.
Virginia law requires eligible employers to register or certify their exemption with proof of their employee retirement savings plan by Feb. 15, 2024. Businesses that fail to respond before the registration deadline could face an annual penalty of up to $200 per eligible employee.
Mary Morris, CEO of Virginia529, said in a news release the sooner employers register, the sooner their employees can begin to save.
“RetirePath addresses the retirement savings gap head-on by offering more Virginians the chance to save at work,” Morris said.
Employees, 18 years and older working at least 30 hours a week, are eligible to enroll within 30 days after coming on board with a business registered for RetirePath, but are not obligated to participate.
Sandra J. Pennecke, 757-652-5836, sandra.pennecke@insidebiz.com