AL SB187

Amends Section 36-26-14 of the Alabama Code to authorize automatic enrollment of new employees in the State Personnel Board's tax deferred compensation plan upon employment.

Automatically enrolled employees must contribute $10 per pay period from pre-tax income unless they opt out within 90 days of their first contribution.

Employees may withdraw contributions without penalty during the 90-day opt-out period and may change contribution amounts or investment options at any time.

During the 90-day opt-out period, plan contributions must be invested in options with limited market volatility exposure as determined by the plan or employee.

Requires the State Personnel Board or employing entity to provide written notice to automatically enrolled employees detailing their right to opt out and available investment options; lack of notice creates no additional liability on the state or plan administrators.