CS for SB 135 Summary

• Establishes the Alaska Work and Save Program, a retirement savings program administered by the Alaska Retirement Savings Board for employees whose employers do not offer qualified retirement plans.

• Employers without qualified retirement plans must facilitate employee participation in the program, with eligible employees automatically enrolled at default contribution rates set by the board and able to opt out or adjust rates.

• Creates a nine-member Alaska Retirement Savings Board consisting of the commissioners of labor and revenue plus seven appointed trustees with expertise in investment management, finance, banking, economics, or accounting.

• Allows Alaska residents to direct permanent fund dividend payments toward their Work and Save Program accounts through the electronic dividend application process, with 7% of contributions used for administrative costs.

• Authorizes the commissioner of labor and workforce development to impose civil penalties up to $100 per employee (maximum $5,000 per year) on employers that fail to facilitate program participation for six months.

• Takes effect January 1, 2025.