The legislation creating the program was introduced by Philadelphia City Council President Kenyatta Johnson
Philadelphia voters approved a ballot question yesterday (May 19) that formally established the Philadelphia Retirement Savings Program, known as PhillySaves.
PhillySaves is a new initiative designed to help workers without access to employer-sponsored retirement plans build long-term financial security. While state-level auto-IRA programs exist, Philadelphia will be the first U.S. city to create its own version, specifically targeting workers whose employers do not offer plans
“Thank you to Philadelphia voters and members of the Philadelphia City Council for approving the Automatic Individual Retirement Account legislation, also known as PhillySaves, and to Mayor Cherelle L. Parker for supporting this important legislation,” said City Council President Kenyatta Johnson (Second District), the prime sponsor of the legislation.
“Philadelphia needs PhillySaves because over 200,000 private-sector workers in the city lack access to a retirement savings program at work. PhillySaves is a long-term solution to reduce the retirement savings gap and ensure that our residents can retire comfortably and with dignity. This is a very good day for Philadelphia workers.”
Approval of the ballot question on May 19 will establish the Philadelphia Retirement Savings Board to oversee the program. The program will be overseen by a nine-member board, with four members appointed by the mayor, four by the Council President, and one selected by the City Controller. The goal is to form the nine-member board as soon as possible so that implementation of the Philly Saves program can begin in 2027.
Across the country, 17 states have established similar auto-IRA plans. As of December 2025, 12 of these programs had accumulated nearly $2.7 billion in savings, involving more than one million participants and 260,000 employers, according to Pew Charitable Trusts.
The PhillySaves program will automatically enroll eligible employees to contribute a portion of their wages—between 3 and 6 percent—to an Automatic Individual Retirement Account (Auto-IRA). Participation in the PhillySaves program is free for employers. Workers can opt out or change their contributions at any time.
To participate, employees must work for Philadelphia businesses that have operated for at least two years and do not currently offer retirement benefits. Sole proprietors and self-employed individuals are excluded for now, though the board may consider extending coverage to these groups in the future.
The initiative comes amid stark statistics showing that many Philadelphia residents enter retirement with little or no savings. A Pew Charitable Trusts report found that 35 percent of Philadelphia residents over 65 live on about $15,000 annually, while households with retirement income have a median income of nearly $58,000.
The original Bills #250950, 250651-A, and Resolution #250970-A were approved in December 2025. They were sponsored by President Kenyatta Johnson and co-sponsored by City Councilmember Mike Driscoll (6th District).
Among the groups and individuals supporting PhillySaves were AARP Pennsylvania; Yocasta Lora, Associate State Director of Advocacy & Community Engagement at AARP Pennsylvania; The Pew Charitable Trusts; The Chamber of Commerce for Greater Philadelphia; Northeast Philadelphia Small Business Alliance; Philadelphia City Council; Mayor Cherelle L. Parker; and Tiffany Chavous, CEO of Somerset Academy Early Learning Center, representing early childhood providers.
