AL SB135

Creates the Alabama Retirement Savings Program, a state-facilitated automatic enrollment payroll deduction IRA administered by the Alabama Department of Workforce for private sector employees at businesses with 500 or fewer employees

Requires employers to automatically enroll employees who do not opt out, with a default contribution rate of 3% of wages; employees may change contribution levels quarterly or terminate participation at any time

Establishes the Alabama Retirement Savings Program Fund as a special fund separate from state monies, with no state liability beyond amounts paid into the fund; administrative fees capped at 0.6% of fund balance (0.75% during first three years)

Program implementation required within 24 months of the June 1, 2026 effective date, with possible 12-month extension; phased rollout beginning with larger employers

Participating employers have no fiduciary liability for employee investment decisions, program design, or investment performance; employers may contract with third parties to handle enrollment and payroll deduction tasks