Philadelphia Becomes the First City in the U.S. to Enact a Mandatory Retirement Savings Program
Philadelphia has become the first city in the country to enact a mandatory workplace retirement savings option. T he program – also known as PhillySaves – was signed into law by Mayor Cherelle Parker on January 20, 2026, but its implementation required passage as a ballot measure. After Philadelphia voters approved the initiative in the city’s May 19 elections, the program went into effect immediately, though contributions do not begin until July 1, 2027, likely in a phased implementation. More than 15 states have already enacted some form of mandatory retirement savings program for employees that are not otherwise covered by an employer-sponsored plan, with similar bills having been proposed in at least 10 others this legislative session. However, the Philadelphia measure is the first local-level enactment of such a plan. PhillySaves applies to employers that have been in business within the city of Philadelphia for at least 24 months . While this is likely to apply primarily to small...