AL SB173

Creates the Alabama Retirement Savings Program, administered by the Alabama Department of Workforce, to provide automatic enrollment payroll deduction IRAs for private sector employees whose employers do not offer retirement plans.

Eligible employers include self-employed individuals, sole proprietors, and for-profit enterprises with 500 or fewer employees; participation by employers and employees is voluntary with opt-out provisions.

Establishes a special fund separate from state monies with individual retirement accounts for enrollees; employees contribute a minimum of 3 percent of wages through payroll deductions with ability to change contribution levels quarterly.

Secretary of Workforce authorized to contract with private financial institutions to manage investments; annual administrative fees capped at 0.6 percent of fund balance (0.75 percent for first three years), with state potentially covering startup costs.

Program must be implemented and enrollment begin within 24 months of June 1, 2025 effective date (with possible 12-month extension), rolled out in phases favoring larger employers; employers exempt from fiduciary liability.