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 without access to employer-sponsored retirement plans, as well as certain self-employed individuals. The program will automatically deduct 3% of participating employees' earnings from their wages, with options to opt out or adjust contribution amounts. This initiative particularly targets employees of small businesses that struggle to provide retirement savings options due to cost and administrative challenges. The program is designed to be portable, allowing employees to retain their accounts when changing jobs, and aims 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 government officials and public members with relevant experience. The Board will manage the program, ensure compliance with federal laws, and promote participation through outreach and education. Employers will be required to enroll employees and remit contributions within a specified timeframe. The legislation also outlines enforcement procedures for noncompliance, allowing the Board to issue notices and impose administrative penalties of up to $250 per employee per year, with a maximum total penalty of $5,000 annually. Additionally, the bill provides a process for appeals and includes a fiscal impact statement, taking effect after approval by the Mayor and a 30-day congressional review period.