The Alabama House of Representatives on Tuesday approved a bill that would automatically enroll new state employees in individual retirement accounts.
HB466 passed 91 to 10 and would apply to new hires after Jan. 1.
Sponsored by Rep. Phil Williams (R-Huntsville), the initial contribution rate would be set at 1.5 percent, though employees could adjust that higher — or adjust it to zero — at the time of enrollment. It also allows employees to opt out after 90 days and withdraw any money invested.
During the debate, Williams explained the bill was designed “to make it easier for employees to save for their retirement in a tax deferred vehicle.”
The bill will now move to the Senate for a vote.