Bill > SB21

This bill establishes the Alaska Work and Save Program, a state-sponsored retirement savings initiative for employees whose employers do not offer a qualified retirement plan. Under this program, eligible employees will be automatically enrolled in a retirement savings account at a default contribution rate, with the ability to opt out or adjust their contribution levels. The program will be administered by the Department of Revenue, which will develop investment options, manage participant accounts, and ensure low administrative fees. Employers without existing retirement plans will be required to facilitate employee participation, and those who fail to do so may face civil penalties up to $5,000 per year. Participants can contribute through payroll deductions and potentially through other means like their permanent fund dividend. The program emphasizes that it does not guarantee returns, is not an employer-sponsored retirement plan, and participants should seek financial advice from professional advisors. The bill also amends existing law to allow permanent fund dividend applicants to direct a portion of their dividend to their Work and Save Program account. The program is set to take effect on January 1, 2026, and aims to provide retirement savings opportunities for workers in Alaska who currently lack access to employer-sponsored retirement plans.

Budget and Finance, Business and Industry

https://www.akleg.gov/basis/Bill/Detail/34?Root=SB21