A retirement program for non-city workers was proposed months ago, and this week City Council moved to establish a board to oversee the initiative.
A bill introduced Thursday calls for a ballot question in May on forming the authority for PhillySaves, which was introduced in June and is awaiting approval. If the program is enacted, workers with employers who don't offer a retirement plan would be automatically enrolled to contribute between 3-6% of their wages to an IRA. Employees can opt-out or change their contributions.
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The 15-member oversight board that would manage the initiative would include four people selected by the mayor and four selected by Council President Kenyatta Johnson (D-2nd), who introduced the bill. The other members would be appointed by the city controller and several chambers of commerce groups.
To qualify for the program, a worker's employer must have operated in Philadelphia for at least two years and not offer retirement benefits. The initiative does not include sole proprietors or self-employed residents, but the board could investigate extending PhillySaves to that group of people.
Retirement savings make a huge difference for seniors in the city. A report from Pew Charitable Trusts found that 35% residents who are 65 or older in Philadelphia had incomes of around $15,000, and 23% of older households had joint incomes below the federal poverty line. That same study showed that in older households with any form of income from retirement funds, including with Social Security, median household income jumped up to $57,970.
But many seniors haven't been able to set money aside. A study from BlackRock investment firm found that over half of voters in Pennsylvania had less than $50,000 in savings as they head into retirement and a third had nothing saved, the Pittsburgh Post-Gazette reported. In 2016, a report found than only 48% of Philadelphia workers between the ages of 25 and 64 had access to an employer retirement plan, which was less than the national average of 53%.
Johnson said the idea for the program is to offer employees who typically aren't offered retirement plans, such as restaurant workers, a chance to save.
"Currently, individuals who work in that particular type of industry don't have those types of opportunities for them, so it's an affordability initiative as well," Johnson said.
City Council has explored this issue before, although it hasn't made it off the ground. As a council member in 2016 and 2017, Cherelle Parker was part of a task force exploring a required retirement plan for private-sector workers. As of October 2025, 22 states and two cities have enacted state- or city-run retirement programs for private-sector employees, according to Georgetown University's Center for Retirement Issues.
Supporters of the program think it will help ease the financial burden for seniors.
"Work and Save programs, like PhillySaves, are proven solutions that make saving simple through payroll deduction and come at no cost to employers or taxpayers," senior organization AARP wrote in a statement supporting the legislation. "Every Philadelphian deserves the chance to retire with dignity and financial security. With the rising cost of living, it’s more important than ever that we give workers the opportunity to take control of their financial futures."