State-Sponsored Retirement Program in Virginia

Virginia has implemented a mandatory retirement savings program called the Virginia RetirePath

Virginia RetirePath

RetirePath Virginia is a state-sponsored retirement savings program designed to help private-sector employees save for retirement, especially those who don't have access to employer-sponsored retirement plans.

Mandatory Participation: Construction companies in Virginia are required to participate in RetirePath Virginia if they meet the following criteria:

• Employer Size: The company must have 25 or more eligible employees.  
• Business Duration: The company must have been in operation for two or more years.  
• Lack of Employer-Sponsored Plan: The company must not offer a qualified retirement plan (like a 401(k) or 403(b)).

Employee Eligibility: Eligible employees are those who:

• Are 18 years of age or older.  
• Receive Virginia income.
• Work at least 30 hours per week for any portion of the year. 

Employer Responsibilities: As an employer, you are responsible for:

• Registering your business with the Virginia Retirement Savings Program.
• Enrolling eligible employees in the program.
• Withholding employee contributions from payroll.
• Remitting employee contributions to the program.
• Providing information to employees about the program.

Failure to comply with these requirements may result in penalties.

This information has been referenced from the following sites:1,2