Philadelphia to Implement Auto-IRA Program

Philadelphia voters have approved a ballot measure that is expected to establish the nation's first city-run auto-IRA program. Mayor Cherelle Parker signed bills into law on January 20, 2026, to establish the Philadelphia Retirement Savings Program known as PhillySaves—but the legislation required a separate ballot measure to create the Philadelphia Retirement Savings Board to oversee the program. 

Workers for Philadelphia-based businesses or nonprofits that have been in operation at least two years and do not offer a 401(k), pension, or other retirement plan would be eligible to participate and enroll their workers, with contributions at a rate of three to six percent of wages automatically deducted into a Roth IRA (or traditional IRA, or both). Workers can opt out or change their contributions at any time. Self-employed individuals are not eligible to enroll. City Council President Kenyatta Johnson noted during the bill signing in January that over 200,000 private sector workers in the city do not have access to a retirement savings program at work. Contributions must begin no later than July 2027, with a phased rollout.