Deadline for employers to register for state RetirePath program nears

Under the law, certain employers in Virginia are required to either register for RetirePath or offer their own qualified retirement plan. The deadline to register is Feb. 15.

“RetirePath is designed to remove the barriers that discourage companies from offering a retirement plan,” said Peter Thompson, RetirePath Program Director. “The feedback we’re getting is encouraging. Employers are happy and, most importantly, their employees are grateful to have this option.”

RetirePath is a free program for employers that allows them to set up a simple way for employees to save for retirement with no employer fees, no fiduciary responsibility, and minimal administrative requirements. Virginia employers that don’t offer a qualified retirement savings plan must register and facilitate RetirePath if they have been operating for two or more years and have 25 or more eligible employees (defined as those who are at least 18 years of age, receiving wages, and who worked at least 30 hours a week for any portion of a week, whether consecutive or not, in the preceding calendar year).

Employers that fail to respond by state-mandated deadlines are considered out of compliance and may be subject to enforcement action, such as penalties and fines. Eligible employees who are self-employed or who do not work for an employer that is registered with RetirePath also may open an account.

For details about registering your business with RetirePath, visit RetirePathVA.com.