CHARLESTON, W.Va. — A plan being debated at the state capitol focuses on whether the state should get involved with helping non-state workers save for retirement.
The VERA, Voluntary Employee Retirement Accounts, issue was before a legislative interim committee Tuesday. Lawmakers worked on a bill earlier this year that would have the state manage such a program that would allow employees of small businesses to have money taken out of their paychecks toward retirement.
AARP is pushing the plan. AARP Senior Legislative Representative Sarah Mysiewicz Gill said many residents won’t save on their own. She said the VERA option is picking up momentum in many other states.
But there’s a coalition of business groups in West Virginia that has come out against the plan. Attorney Mary Jane Pickens said it’s a broad coalition that has raised concerns.
“We believe that it’s best to build on the current foundation. Everyone agrees everyone needs to save, that’s not an issue, but education and financial literacy is key,” Pickens said.
David John, AARP senior strategic policy adviser, told lawmakers the current situation for many workers is not providing an opportunity to save. He said the state would help manage the system but would not be liable for the success or failure of it.
“This would allow individuals to save some of their own money in a financial services firm. There is no guarantee by the state. There is no performance guarantee or anything along that line. There is absolutely no contingent liability,” John said.
Pickens said there are plenty of programs already available for workers to save money, things like IRAs. She said that’s not the problem.
“The coalition believes the barriers are more directly linked to economic issues than to access issues, access to products, services and advice,” Pickens said.
AARP said nearly 50 percent of all workers in West Virginia don’t have retirement plans available through their jobs.
The VERA bill passed the House of Delegates earlier this year but died in the state Senate during the last week of the regular session.