HB17 Summary

• Amends Section 36-26-14 of the Alabama Code to authorize automatic enrollment of eligible employees in the State Personnel Board's tax deferred compensation plan upon employment or return from a break in service.

• Automatically enrolled employees contribute $10 per pay period in pre-tax compensation to their plan account unless they opt out.

• Employees may withdraw from the plan without penalty within 90 days of their first contribution and can change contribution amounts or investment options at any time.

• During the 90-day withdrawal period, contributions are invested in an appropriate investment option with limited market volatility exposure as determined by the plan or employee.

• Requires written notice to automatically enrolled employees including information about opt-out rights and available investment options; failure to provide notice creates no additional liability on the state, board, or plan administrators.