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FISCAL NOTE
Senate Bill 173
Committee: Finance and Taxation General FundSponsor: Senator Robert Stewart
Analyst: Cary Dean Date: 02/19/2025
Senate Bill 173 as introduced would provide for the establishment of a state facilitated
retirement savings program for private sector employees of eligible and participating employers
who opt to enroll in and allow automatic payroll deductions and contributions into individual
IRA retirement savings accounts through their employers. This bill would require a minimum
employee contribution amount of 3% and require the contributions for the individual retirement
accounts to be deposited into the new Alabama Retirement Savings Program (ARSP) Fund ,
established pursuant to the provisions of this bill.
In addition, this bill would increase the administrative obligations of the Alabama Department
of Workforce, by an undetermined amount, to provide for the design, management, and the
investment of funds for the program pursuant to the provisions of this bill. This bill would
further require: (1) the operating costs of the program to be funded from administrative fees
assessed on the total balance of the ARSP Fund, not to exceed .75 percent of the Fund's total
balance for the first three years and not to exceed .6 percent thereafter; and (2) all administrative
fees to be deposited into the new Alabama Retirement Savings Administrative (ARSA) Fund,
created within the State Treasury by this bill. Additionally, this bill would, subject to legislative
appropriation, allow startup administrative costs of the program to be paid by the State until
sufficient assets become available in the ARSA Fund, with the stipulation that the State funds be
repaid.