"Washington Saves", an employee deduction retirement plan

Washington State Introduces “Washington Saves” Retirement Program

Washington state is taking steps to implement a new retirement program, joining 15 other states with similar initiatives. The recently passed ESSB 6069 establishes “Washington Saves,” an automatic enrollment individual retirement savings program.

​Key Points:

• Automatic Enrollment: Employees of covered employers will have the opportunity to contribute to an Individual Retirement Account (IRA) through automatic payroll deductions. While enrollment is automatic, opt-out options are available.
• Employer Participation: Employers must register with Washington Saves and either participate or enroll employees in a retirement plan through associations.
• Enhancing Retirement Security: The program builds upon the existing Washington Small Business Retirement Marketplace, providing additional retirement options.
• Funding and Implementation: The bill appropriates funds for implementation, with expectations of recouping costs over time.
• Launch Date: The program is set to launch by July 1, 2027, potentially phasing in based on employer size.

This initiative aims to empower individuals to save independently for their retirement, contributing to long-term financial security. Despite initial confusion with other state programs, the auto-enrollment retirement plan is designed to benefit Washington residents in the years to come.

You can learn more about the program here. 

Author

Matt Murphy, TCRCC Government and Regional Affairs Director, ​[email protected]