Legislature(2025 - 2026)BELTZ 105 (TSBldg)
03/31/2025 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB137 | |
| SB21 | |
| SB28 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 137 | TELECONFERENCED | |
| *+ | SB 21 | TELECONFERENCED | |
| += | SB 28 | TELECONFERENCED | |
SB 21-AK WORK & SAVE PROGRM; RETIRE. SAVINGS BD
1:43:21 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 21 "An Act establishing the
Alaska Work and Save Program; establishing the Alaska Retirement
Savings Board; and providing for an effective date."
1:43:46 PM
CHAIR BJORKMAN solicited a motion.
1:43:48 PM
SENATOR MERRICK moved to adopt the committee substitute (CS) for
SB 21, work order 34-LS0254\N, as the working document.
1:43:56 PM
CHAIR BJORKMAN objected for purposes of discussion.
1:44:21 PM
MAXINE LABERGE, Staff, Senator Bill Wielechowski, Alaska State
Legislature, Juneau, Alaska, presented SB 21 on behalf of the
sponsor and moved to slide 2, What is Alaska Work and Save:
[Original punctuation provided.]
• Establishes an auto-IRA program for all Alaskan
employees who qualify.
• Creates an option to allow PFD checks to go
toward retirement.
SB 21 would be established in the Department of
Revenue
• The Commissioner, or designee, would be
responsible for establishing, executing and
creating appropriate rules for program
• Allows discretion to partner with other states to
lower costs even more for participants
1:45:17 PM
CHAIR BJORKMAN asked for and explanation of the difference
between the committee substitute and the current legislation.
1:427 PM
HUNTER LOTTSFELDT, Staff, Senator Bill Wielechowski, Alaska
State Legislature, Juneau, Alaska, presented the explanation of
changes from version A to version N of SB 21:
[Original punctuation provided.]
Sec. 4 Amending AS 44.25
AS 44.25.400 Changes the administration of the Alaska
Work and Save program from a board to the commissioner
of revenue or their designee.
AS 44.25.410 Defines the purpose of the program
instead of establishing the Alaska Retirement Savings
Board
AS 44.25.420 Defines the powers and duties of the
program administrator instead of the powers and duties
of the board
AS 44.25.430 Outlines the confidentiality of
information for program participants in place of the
assigned the attorney general as legal council for the
board.
AS 44.25.440 Outlines the complaint process for the
program in place of compensation for trustee.
AS 44.25.450-470 are deleted.
AS 44.25.490 adjusts the definitions to comport with
the change from a board structure to an administrator
structure.
Sec. 5 is changed from uncodified law setting the
initial appointment for the board to setting the
effective date.
Sec. 6 is deleted.
1:46:17 PM
CHAIR BJORKMAN removed his objection.
1:46:22 PM
CHAIR BJORKMAN found no further objection and CSSB 21 was
adopted as the working document.
1:46:34 PM
MS. LABERGE continued with slide 2:
[Original punctuation provided.]
-Establishes an auto-IRA program for all Alaskan
employees who qualify.
Program Participants
• Would be enrolled automatically upon hiring
• Can decide to opt-out or adjust rate
• May contribute PFD towards their retirement
1:47:03 PM
MS. LABERGE moved to slide 3, Why Does Alaska Need an Auto IRA
program:
[Original punctuation provided.]
• 54 percent of households have no retirement savings
• Alaskans aged 60+ account for 20 percent of the
population and growing
• Median retirement savings for ages 65-74 is $200,000,
age 75+ is $130,000
MS. LABERGE said that Alaska needs an Auto IRA program
because it helps strengthen small businesses, provides for
Alaska's aging population, makes jobs more appealing to
applicants, and growing evidence shows it saves money in
the long run.
1:47:45 PM
MS. LABERGE moved to slide 4, Survey of Alaska Small Businesses:
[Original punctuation provided.]
A recent survey of small businesses in Alaska shows:
• 64 percent don't offer retirement of any kind, with
cost being the biggest factor
• 70 percent support an Alaskan retirement savings
option
Current Cost of an IRA program for businesses:
A survey of 121 plans with less than $2 million in
assets found that:
• provider fees could vary from $4,800 to
$17,000per year (this figure does not include
investment fees)
MS. LABERGE stated that a small business is considered a
business with less than 500 employees and in Alaska 99 percent
of the businesses are considered small businesses.
1:48:43 PM
MS. LABERGE moved to slide 5, SB 21 Supports Small Businesses:
[Original punctuation provided.]
• 12th year of out-migration of working aged Alaskans
• Work and Save eliminates the high costs and
bureaucracy for businesses
• Allows small businesses to:
Better recruit and retain employees
Stay competitive with larger businesses
1:49:04 PM
MS. LABERGE moved to slide 6, Other States Have Already Started:
[Original punctuation provided.]
• As of this year, 17 other states have enacted
their own auto-IRA programs
-Of those 17 states, 7 of them have entered
partnership agreements.
-Colorado Partnership for a Dignified
Retirement (PDR): Colorado, Maine, Delaware, Vermont,
Nevada
-MyCTSavingsProgram: Connecticut and Rhode
Island
• Interstate partnerships allow for faster enaction
and possibly lower fees.
• Similar federal legislation has recently been
proposed
1:49:55 PM
MS. LABERGE moved to slide 7, Summary:
[Original punctuation provided.]
SB 21 will create a system like other states,
providing small business a mechanism for their
employees to save for retirement. This will allow for
competition between big and small businesses for
quality talent. SB 21 will help Alaskans better
prepare for their future, improving their quality of
life.
1:50:22 PM
SENATOR GRAY-JACKSON expressed concern about seniors living in
poverty, noting that since 2010 the rate has doubled from 5
percent to 10 percent.
1:51:08 PM
CHAIR BJORKMAN asked for an example of how an employee would
experience the Auto IRA program, from being hired, completing
initial paperwork, to how the employee would encounter and
interact with the program in practice.
1:51:29 PM
MS. LABERGE responded that it's her belief the program would be
included in new-hire paperwork for jobs without other retirement
options. Employees would be automatically enrolled to contribute
a portion of each paycheck but may choose to opt out during
onboarding.
1:52:06 PM
CHAIR BJORKMAN asked whether the program requires additional
administration for employers or requires employers to contribute
more money into their plan.
1:52:20 PM
MS. LABERGE replied that the program doesn't require employer
contributions. Employees fund it through paycheck deductions,
and in Colorado, employers report it takes under an hour to set
up and less than 15 minutes per month to maintain.
1:53:07 PM
SENATOR MERRICK asked if Alaska has considered joining any of
the partnership agreements listed in slide 6.
1:53:18 PM
MR. LOTTSFELDT opined that joining Colorado's program is
advantageous because combining small states lowers asset
management feesColorado's is just 0.23 percent, paid by
participants at no cost to the state. She said creating a
separate program in Alaska would likely result in higher fees
due to the smaller participant base.
1:54:39 PM
CHAIR BJORKMAN held SB 21 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB21 ver A.pdf |
SL&C 3/31/2025 1:30:00 PM |
SB 21 |
| SB21 Sponsor Statement.pdf |
SL&C 3/31/2025 1:30:00 PM |
SB 21 |
| SB21 Sectional Analysis.pdf |
SL&C 3/31/2025 1:30:00 PM |
SB 21 |
| SB21 Fiscal Note-DOR-PFD 03.28.25.pdf |
SL&C 3/31/2025 1:30:00 PM |
SB 21 |
| SB21 Fiscal Note-DOR-TRS 03.28.25.pdf |
SL&C 3/31/2025 1:30:00 PM |
SB 21 |
| SB21 Draft Proposed CS ver N.pdf |
SL&C 3/31/2025 1:30:00 PM |
SB 21 |
| SB21 Explanation of Changes ver A to N.pdf |
SL&C 3/31/2025 1:30:00 PM |
SB 21 |
| SB21 Presentation to SLAC-revised 03.31.25.pdf |
SL&C 3/31/2025 1:30:00 PM |
SB 21 |
| SB21 Supporting Document-Research-AARP Alaska Study 2023.pdf |
SL&C 3/31/2025 1:30:00 PM |
SB 21 |
| SB21 Public Testimony-Letter-ACLI 02.20.25.pdf |
SL&C 3/31/2025 1:30:00 PM |
SB 21 |
| SB28 Supporting Documents-Bill Summary Table.pdf |
SL&C 3/31/2025 1:30:00 PM |
SB 28 |
| SB28 Updated Summary Table-ver A 03.31.25 rev. 1.pdf |
SL&C 3/31/2025 1:30:00 PM |
SB 28 |