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Treasury reiterates support for Keystone Saves and reports growth in PA ABLE accounts
Summary
Treasury said it continues to support the Keystone Saves auto‑IRA proposal, described outreach and small‑business interest, and reported PA ABLE has grown to more than $150 million in assets and is the fifth‑largest program nationally.
Treasury told the committee it still supports a voluntary, payroll‑deduction retirement program for private‑sector workers who lack workplace plans and that the state’s ABLE savings program for people with disabilities has seen rapid growth.
"I come from it from a bridal, conservative perspective, and I think our state has a big problem," Treasurer Garrity said of retirement coverage gaps. She urged a voluntary, government‑sponsored program along the Keystone Saves model—automatic enrollment with payroll deduction—saying many small businesses lack bandwidth to set up retirement plans on their own.
Garrity said Pennsylvania is watching other states where similar programs have accumulated substantial assets: she cited California and Illinois figures offered for comparison and emphasized the program is government‑sponsored, not government‑run. She said outreach to small businesses found many are willing to participate if administration is simple.
On PA ABLE (Achieving a Better Life Experience), Garrity reported the program has more than 10,200 accounts and over $150 million in assets and is the fifth‑largest ABLE program in the nation. She noted a federal change (ABLE Age Adjustment Act) will expand eligibility on Jan. 1, 2026 from onset before age 26 to onset before age 46.
Committee members pressed about enrollment mechanics and whether families need lawyers; Garrity said eligibility checks and account openings can be done online without legal counsel.
No formal action was taken; Treasury said it will continue outreach, provide materials to legislative offices and work with stakeholders on options to achieve consensus for Keystone Saves.
