The proposed bill establishes the Alaska Work and Save Program within the Department of Revenue, aimed at providing retirement savings options for employees who do not have access to a qualified retirement plan. Key provisions include automatic enrollment of eligible employees at a default contribution rate, the ability for employees to opt out or adjust their contributions, and the establishment of participant accounts. The bill outlines the responsibilities of the program administrator, including managing contributions, providing investment options, and ensuring compliance with tax laws. Additionally, it mandates that employers facilitate employee participation in the program and sets forth penalties for non-compliance.

The bill also amends existing laws to allow applicants for the Alaska permanent fund dividend to direct a portion of their dividend to their Alaska Work and Save Program participant accounts, among other charitable contributions. It specifies that contributions to the program will not incur a coordination fee, unlike other organizations listed for contributions. The bill includes provisions for confidentiality of participant information and establishes a process for employees to file complaints against employers who fail to facilitate participation in the program. The Act is set to take effect on January 1, 2026.

Statutes affected:
SB0021A, AM SB 21, introduced 01/10/2025: 43.23.130, 43.23.200, 44.25.400, 44.25.490, 18.67.162, 37.05.142, 44.25.410, 44.25.420, 44.25.470, 44.25.430, 44.25.440, 39.20.180, 44.25.450, 44.25.460, 23.30.395, U.S.C
SB0021B, AM CSSB 21(L&C), introduced 04/09/2025: 43.23.130, 43.23.200, 44.25.400, 44.25.490, 18.67.162, 37.05.142