Key deadlines are fast approaching for Virginia employers required to register with a state-facilitated retirement savings program, and farm businesses aren’t exempt.

The program, called RetirePath Virginia, was established by state law in 2021 to improve the financial security of Virginia workers whose employers don’t offer a retirement savings plan. After their employer registers with the program, eligible employees have contributions placed in an IRA account created for them. 

RetirePath launched in 2023, with program registration originally mandated for entities that didn’t offer a qualifying retirement savings plan; had been in business for at least two years; and had at least 25 employees who were 18 years of age or older, working a minimum of 30 hours a week, and receiving Virginia taxable income.

The General Assembly expanded the program this year to require registration by businesses with five or more employees who are at least 18 years old and receiving Virginia taxable income, without regard to hours worked. This includes domestic seasonal and temporary employees who work at least 90 days a year.

Importantly for farm employers, it hasn’t yet been determined whether H-2A and H-2B workers are considered eligible employees under this program.

Independent contractors and 1099 employees aren’t considered eligible employees, but they can enroll in and contribute independently to RetirePath.

Registration Information and Deadlines

Businesses with five to nine eligible employees must register by Oct. 30. Those with 10-24 eligible employees must register by Sept. 30.

Eligibility is based on the number of qualifying employees the business had during the preceding calendar year.

Covered employers should have received notifications from RetirePath via mail and email informing them they need to register for the program. They also should have received a registration access code.

Employers determined to be eligible for the program who don’t register with RetirePath may be subject to financial penalties. If an employer already offers a qualifying retirement plan or doesn’t meet other eligibility criteria, they can certify an exemption.

Employers who aren’t sure whether they need to register for RetirePath can contact the program at 1-833-608-6281 or email stateiraservice@vestwell.com to seek clarification.

Employer Responsibilities and Employee Options

Beyond registering with the program, employers must upload payroll information, submit employees’ contributions each pay period, and keep employee records up to date in their RetirePath employer portal. Employers with new hires must add them to RetirePath within 60 days of their start date.

Employers registered with RetirePath can terminate their participation if they drop and stay below the five-employee threshold after a full calendar year.

Payroll service providers may be able to help maintain a business’ employee roster and process contributions.

Though qualifying employers must facilitate access to RetirePath for their employees, the program doesn’t allow employers to match contributions. There are no employer fees or fiduciary responsibilities.

Enrolled employees’ accounts are funded through payroll deductions that begin at a default savings rate of 5% of total pay and increase annually. Employees can change their contribution rates and investment selections.

RetirePath automatically enrolls eligible employees if they don’t opt out of the program within 30 days of their employer registering with RetirePath. Employees can opt out of the program at any time. Additionally, employees who’ve opted out of the program can opt in later.

For more information, see the frequently asked questions page on RetirePath’s website: FAQs | RetirePath Virginia.