Alaska2026Passed Legislature
SB21
Alaska Work and Save Program and Dividend Investment Options
Last scannedSep 12, 2026, 4:46 AM
In one sentence
This law creates a new retirement savings program for workers without employer plans and lets people choose to put their Permanent Fund dividends into investment accounts or donate them.
What it does
- Establishes the Alaska Work and Save Program in the Department of Revenue for employees who do not have an employer-sponsored qualified retirement plan.
- Requires employers that do not offer a qualified retirement plan to help their employees join the program.
- Automatically enrolls eligible employees at a default contribution rate, though they can choose to opt out or change their amount.
- Allows any person who earns compensation in Alaska to voluntarily enroll in the savings program.
- Permits Permanent Fund dividend applicants to direct part of their payment into an investment account identified by them.
- Enables dividend recipients to subtract money from their check and contribute it to specific funds like the crime victim compensation fund, peace officer survivors' fund, or charitable organizations listed on the application.
- Requires that 7% of contributions made through the electronic form be used for administrative costs taken directly from the donated amount rather than state tax dollars.
Who it affects
- Employees in Alaska who do not have access to a qualified retirement plan at their job.
- Any person earning compensation in the state who wants to voluntarily join the savings program.
- Applicants for Permanent Fund dividends who wish to invest or donate part of their payment.
- Educational organizations, community foundations, and charitable groups listed on the official contribution list.
Limits and unknowns
- The state and program administrators do not guarantee any specific rate of return or interest on contributions.
- Participants assume all risks related to investment losses, as the state is not liable for money lost in the accounts.
- Specific details about default contribution rates and maximum limits will be set by regulations later.
Plain language
Terms to know
- Permanent Fund Dividend
- An annual cash payment sent to eligible Alaska residents from the state's Permanent Fund earnings.
- Alaska Work and Save Program
- A new retirement savings account system for workers whose employers do not offer a similar plan.
- Automatic Enrollment
- The process where eligible employees are signed up for the program by default unless they choose to leave it.
Official record
Sources
Official summary
AK WORK & SAVE PRGRM; PFD INVESTMENT ACCT An Act establishing the Alaska Work and Save Program in the Department of Revenue; relating to depositing permanent fund dividends into investment accounts; and providing for an effective date.
Official activity
Bill history
- (S) JOINT SESSION at 01:00 PM HOUSE CHAMBERText
- (S) GOVERNOR VETO SUSTAINED Y39 N213041
- (S) MOTION TO OVERRIDE VETO3041
- (S) VETOED BY GOVERNOR 6/18/263026
- (S) 10:14 A.M. 6/1/26 TRANSMITTED TO GOVERNOR2957
- (S) COSPONSOR(S): KAWASAKI, YUNDT2804
- (S) EFFECTIVE DATE(S) SAME AS PASSAGE2774
- (S) CONCUR AM OF (H) Y17 N32774
- (S) CONCUR MESSAGE READ AND TAKEN UP2773
- (H) VERSION: HCS CSSB 21(L&C)2887
- (H) TRANSMITTED TO (S) AS AMENDED2887
- (H) DIBERT2886
- (H) CROSS SPONSOR(S): JOSEPHSON, BYNUM, UNDERWOOD, HOLLAND, GRAY, MEARS, EISCHEID,2886
- (H) TITLE CHANGE: HCR 182878
- (H) EFFECTIVE DATE(S) SAME AS PASSAGE2878
- (H) PASSED Y31 N92877
- (H) READ THE THIRD TIME HCS CSSB 21(L&C)2877
- (H) ADVANCED TO THIRD READING UC2877
- (H) L&C HCS ADOPTED UC2877
- (H) READ THE SECOND TIME2877