HB 2903 Summary

• Establishes the Arizona Retirement Savings Board and Arizona Retirement Savings Program to provide individual retirement accounts (IRAs) for employees of private employers who do not offer retirement plans.

• Requires covered employers to automatically enroll employees in payroll deduction Roth IRAs with a default 5% contribution rate, with employees able to opt out or adjust contributions at any time.

• Implements phased enrollment beginning April 1, 2027, starting with employers having 25+ employees, expanding to smaller employers by April 1, 2028.

• Imposes escalating penalties on employers for failure to enroll eligible employees without reasonable cause, ranging from $10 per employee per year before April 1, 2028, increasing to $100 per employee after October 1, 2030.

• Appropriates $1,600,000 from the state general fund in fiscal year 2025-2026 for establishment and administration of the program.