The Automatic Retirement Savings Act of 2025 aims to create a Retirement Savings Board responsible for overseeing a universally available and voluntary Retirement Savings Program for 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 to provide retirement savings options due to financial and administrative challenges. The program is designed to be portable, allowing employees to maintain their accounts even when changing jobs, and it seeks to address the retirement savings gap, particularly 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 federal laws, and promote participation through outreach and education. Employers will be required to enroll their employees in the program and remit contributions within a specified timeframe. The legislation also outlines enforcement procedures for compliance, including a notice of noncompliance, a 90-day compliance period, and potential administrative penalties of up to $250 per employee per year, with a maximum total penalty of $5,000 annually. Additionally, the bill establishes an appeals process for employers and includes a fiscal impact statement, with the act taking effect after approval by the Mayor and a 30-day congressional review period.