Committee hears HB 338 to create 'Alaska Work and Save' auto‑IRA; AARP and Colorado officials back the model

Representative Mia Costello presented House Bill 338 on April 27, proposing an Alaska Work and Save automatic individual retirement arrangement (auto‑IRA) that would allow payroll deductions, an opt‑out enrollment model and an option to route all or part of the permanent fund dividend toward retirement contributions.

Costello said the Department of Revenue commissioner (or designee) would establish and execute the program and that participating small employers would have no required match. Zach Young, staff to Representative Costello, explained the bill would exclude employers that already offer retirement plans, apply to small businesses meeting a specified threshold, and allow Alaska to join interstate partnerships to lower start‑up fees and administrative burdens.

Invited witnesses included AARP Alaska and AARP national, and Hunter Raley from Colorado’s Department of Treasury. Marge Duncan (AARP Alaska) told the committee Alaska faces a retirement‑savings gap and cited an estimate that leaving the access gap unaddressed could raise state public‑assistance costs by $708 million through 2040. Jessica Ekman (AARP national) said state programs have produced nearly $3 billion in saver assets nationally and emphasized that compliance and enforcement language affects partnership eligibility and program uptake.

Hunter Raley described Colorado’s experience: the state‑facilitated program is a public–private partnership with recordkeepers and investment managers under contract; Colorado reported about 18,000 registered employers, roughly 110,000 funded accounts and more than $200 million in assets after a few years, and noted partnering lowers per‑state startup costs for small populations.

Committee members asked detailed implementation questions. On enforcement, Ekman said the bill includes civil penalties (described in the hearing as $100 per eligible employee up to $5,000 per year) similar to other states. On investment oversight, witnesses said the state board typically functions as a fiduciary and selects, but does not directly advise on, a menu of investment options while private firms manage recordkeeping and investments.

Cochair Hall said the committee would set the bill aside; no vote was taken. The committee did not adopt or reject the proposal at this hearing.