The bill establishes the Iowa retirement savings plan trust, which aims to help residents save for retirement. The trust will be managed by the state treasurer, who will have the authority to enter into contracts, invest funds, and provide education to participants. Employers are mandated to automatically enroll eligible employees in the trust, with a default contribution rate determined by the treasurer. Employees can opt out or modify their contributions and investment choices, and employers must hold an annual open enrollment period for those who previously opted out. The bill also creates two funds within the trust: a program fund for participant contributions and an administrative fund for operational costs.

To ensure compliance, the bill imposes civil penalties on employers who fail to enroll employees, with fines capped at $250 per unregistered employee annually. It clarifies that neither the state nor the treasurer will guarantee returns on contributions or be liable for any losses. Contributions to the trust will not be allowed before July 1, 2027, and the implementation will occur in phases, starting with larger employers and gradually including smaller ones. The treasurer is also authorized to create low-risk and target date investment portfolios as default options for participants and is required to distribute informational materials and annual reports regarding the trust.