The Automatic Retirement Savings Act of 2025 seeks to create a Retirement Savings Board responsible for overseeing 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, although employees can opt out or adjust their contribution amounts. This initiative is particularly focused on assisting small businesses that struggle with the costs and administrative burdens of providing retirement savings options, while also addressing the retirement savings gap, especially for marginalized communities.

The bill details the structure and duties of the Retirement Savings Board, which will consist of seven members, including public representatives with relevant expertise. The Board will manage the program, ensure compliance with federal laws, and promote participation through outreach and education. Employers will be mandated to enroll their employees and remit contributions within a specified timeframe. The legislation also outlines participant rights, such as the ability to withdraw funds and modify contribution rates, while emphasizing financial education and transparency. Additionally, the bill establishes enforcement procedures for compliance, allowing the Board to issue notices of noncompliance and impose administrative penalties, with a structured appeals process for employers to contest decisions made by the Board. The bill will take effect following approval by the Mayor and a 30-day congressional review period.