Bill > SB21

This bill establishes the Alaska Work and Save Program, administered by the Department of Revenue, to provide a retirement savings option for employees in Alaska whose employers do not offer a qualified retirement plan, meaning a retirement savings plan that meets federal tax law requirements. Under this program, eligible employees will be automatically enrolled and their contribution rates will increase by default, though they can opt out or adjust their contributions. The program will also allow individuals to voluntarily enroll and, importantly, to direct a portion of their Permanent Fund Dividend (PFD), which is a payment made annually to eligible residents from the state's oil revenues, into their Alaska Work and Save Program account or other designated investment accounts, with the applicant assuming any investment risk. The bill also clarifies that while a small percentage of contributions to certain charitable organizations made through the PFD application may be used for administrative costs, the Alaska Work and Save Program itself will not have fees deducted for administrative costs from contributions made through the PFD. The program is set to take effect on January 1, 2027.