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AARP Kansas Urges Lawmakers to Support HB 2649: Expanding Retirement Savings Through Work and Save

AARP

Published March 09, 2026

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AARP Kansas is working with legislators and state policymakers to advocate for HB 2649, legislation that would create the Kansas Empowerment Savings Program — a savings option designed to help more Kansans build retirement security.

The Retirement Savings Challenge Facing Kansans

For many Kansas workers, saving for retirement is not a question of motivation; it’s a question of access. During a recent informational hearing for the House Committee on Financial Institutions and Pensions, AARP Kansas highlighted that more than 443,000 private‑sector workers in Kansas, about 40 percent of the workforce, do not have access to a workplace retirement plan.

Without an easy way to save at work, many people never get started. While individuals can open an IRA on their own, research shows workers are far more likely to save when contributions are made automatically through payroll deduction.

The consequences of this access gap are real. Social Security alone is often not enough to cover basic expenses in retirement, leaving many older Kansans financially strained and more likely to rely on taxpayer-funded programs.

Why AARP Supports Work and Save Option

AARP’s mission is to help people choose how they live as they age, and financial security is central to that independence. During the hearing, AARP leaders emphasized that the retirement savings crisis has been building for decades and that Work and Save programs offer a proven, practical solution.

Work and Save programs are public-private partnerships. The state provides the structure, while private‑sector firms manage investments. These programs are designed to be self-sustaining, low-cost, and easy to use for both workers and employers.

Key design features highlighted in testimony include:

Automatic enrollment, with workers free to opt out at any time
Voluntary participation, with workers controlling their own contributions
Portability, so savings follow workers from job to job

These features mirror what is already standard in many employer-sponsored plans and have been shown to increase participation in retirement savings significantly.

What HB 2649 Would Do

HB 2649 would establish a portable, payroll‑deduction IRA program for Kansas workers who do not have access to an employer-sponsored retirement plan. The program is modeled on similar efforts already operating in other states.

Under the bill:

Workers would be automatically enrolled, but could change their contribution level or opt out
Accounts would belong to the worker and move with them throughout their career
Employers would have no cost and no fiduciary responsibility, with duties limited to payroll functions they already perform

The program would be overseen by a Board of Trustees within the State Treasurer’s Office, which would be responsible for selecting investment managers, developing educational materials, and conducting outreach.

Supporting Small Businesses and Protecting Taxpayers

AARP Kansas emphasized that small businesses want to help their employees save, but often cite cost, complexity, and time as barriers to offering retirement plans in-house. HB 2649 is designed to remove those barriers while expanding access for workers.

AARP also highlighted the broader fiscal impact. Without action, inadequate retirement savings could lead to increased reliance on public assistance in the future. By helping workers save their own money, Work and Save programs strengthen individual independence and help protect taxpayers over the long term.

A Practical, Proven Path Forward

Across the country, programs are already helping workers build savings simply by making it easier to start. When people are given access to payroll‑deduction savings, they do save.

HB 2649 offers Kansas a commonsense, market-based approach to retirement security—one that supports workers, helps small businesses, and reduces future strain on public resources. AARP Kansas was proud to testify in support of this legislation and will continue advocating for solutions that help Kansans of all ages build a more secure financial future.