The Automatic Retirement Savings Act of 2025 establishes a Retirement Savings Board to oversee a new, universally available, and voluntary Retirement Savings Program aimed at employees of private businesses and certain self-employed individuals who do not have access to employer-sponsored retirement plans. The program will automatically deduct 3% of participating employees' earnings from their wages, with options to opt out or adjust contribution amounts. This initiative is particularly beneficial for small businesses that struggle with the costs and administrative burdens of providing retirement savings options. The program is designed to be portable, allowing employees to retain their accounts when changing jobs, and it seeks to address the retirement savings gap, especially among marginalized communities.

The bill details the structure and responsibilities of the Retirement Savings Board, which will consist of seven members, including public representatives with relevant experience. The Board will manage the program, ensure compliance with laws, and promote participation through outreach. Employers are required to enroll employees and remit contributions promptly. The legislation includes participant rights such as changing contribution rates and receiving annual account statements. It also outlines enforcement procedures for noncompliance, allowing the Board to issue notices and impose penalties, with a maximum of $250 per employee per year and a total cap of $5,000 annually. Employers can appeal Board decisions, and the act will take effect after approval by the Mayor and a 30-day congressional review period.