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Enrolled SB 21
LAWS OF ALASKA
2026
Source Chapter No.
HCS CSSB 21(L&C) _______
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.
_______________
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
THE ACT FOLLOWS ON PAGE 1
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AN ACT
Establishing the Alaska Work and Save Program in the Department of Revenue; relating to 1
depositing permanent fund dividends into investment accounts; and providing for an effective 2
date. 3
_______________ 4
* Section 1. AS 43.23 is amended by adding a new section to read: 5
Sec. 43.23.058. Deposits from dividends. (a) An applicant for a permanent 6
fund dividend who is eligible under this chapter to receive a permanent fund dividend, 7
or the applicant's authorized representative, may direct that the dividend payment be 8
deposited in an investment account identified by the applicant. 9
(b) The department shall design the permanent fund dividend application form 10
to allow an applicant, or the applicant's authorized representative, to direct the 11
department to make a deposit under this section and to provide the information that the 12
department determines is necessary to implement this section. The application form 13
must notify the applicant that the applicant assumes the risk of investments made 14
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under this section. 1
(c) The department may not use money from the dividend fund for 2
administrative costs incurred in implementing this section. 3
* Sec. 2. AS 43.23.130(a) is amended to read: 4
(a) Notwithstanding AS 43.23.200, the Department of Revenue shall prepare 5
the electronic Alaska permanent fund dividend application to allow an applicant who 6
files electronically to direct that money be subtracted from the dividend payment and 7
contributed to the applicant's Alaska Work and Save Program participant 8
account (AS 44.25.400 - 44.25.490), the crime victim compensation fund 9
(AS 18.67.162), the peace officer and firefighter survivors' fund, or one or more of the 10
educational organizations, community foundations, or charitable organizations that 11
appear on the contribution list contained in the application. A contribution to an 12
Alaska Work and Save Program participant account, the crime victim 13
compensation fund, the peace officer and firefighter survivors' fund or to an 14
organization may be $25, $50, $75, $100, or more, in increments of $50, up to the 15
total amount of the permanent fund dividend that the applicant is entitled to receive. If 16
the total amount of contributions elected by an applicant exceeds the amount of the 17
permanent fund dividend that the applicant is entitled to receive, contributions shall be 18
deducted from the dividend in the order of priority elected by the applicant on the 19
application until the entire amount of the dividend that the applicant is entitled to 20
receive is allocated for contribution. The electronic dividend application form must 21
include notice that seven percent of the money contributed will be used for 22
administrative costs incurred in implementing this section, and money from the 23
dividend fund will not be used for that purpose. 24
* Sec. 3. AS 43.23.130(b) is amended to read: 25
(b) The department shall list each educational organization, community 26
foundation, or charitable organization eligible under (c) and (d) of this section, each 27
university campus that applies under (l) of this section, the Alaska Work and Save 28
Program, the crime victim compensation fund, and the peace officer and firefighter 29
survivors' fund on the contribution list. The department shall maintain an electronic 30
database for the contribution list that is accessible to the public and that permits 31
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searches by organization or fund name, geographic location, and type. The department 1
shall provide a statement of the contributions made by an individual that is suitable for 2
federal income tax purposes to each individual who elects to contribute under (a) of 3
this section. 4
* Sec. 4. AS 43.23.130(m) is amended to read: 5
(m) In addition to the application fee in (f) of this section, the department shall 6
withhold a coordination fee from each organization, foundation, or university campus 7
that receives contributions under this section in the immediately preceding dividend 8
year. The coordination fee for an organization, foundation, or university campus that 9
receives contributions under this section shall be seven percent of the amount of 10
contributions reported by the department under (j) of this section for the organization, 11
foundation, or university campus for the immediately preceding dividend year. The 12
coordination fee shall be separately accounted for under AS 37.05.142 and shall be 13
accounted for separately from the application fee collected under (f) of this section. 14
The annual estimated balance in the account maintained under AS 37.05.142 for 15
coordination fees collected under this subsection may be appropriated for costs of 16
administering this section. The department may not withhold a coordination fee for 17
contributions to an Alaska Work and Save Program participant account, the crime 18
victim compensation fund, or the peace officer and firefighter survivors' fund. 19
* Sec. 5. AS 44.25 is amended by adding new sections to read: 20
Article 5. Alaska Work and Save Program. 21
Sec. 44.25.400. Alaska Work and Save Program. (a) The Alaska Work and 22
Save Program is established in the Department of Revenue. The commissioner of 23
revenue or the commissioner's designee shall administer the program. 24
(b) An employer that does not offer a qualified retirement plan shall facilitate 25
participation of the employer's employees in the program. 26
(c) Under the program, 27
(1) an eligible employee is automatically enrolled in the program at the 28
default contribution rate established by the administrator; 29
(2) an eligible employee's contribution rate increases at the default rate 30
established by the administrator; 31
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(3) an eligible employee may 1
(A) opt out of the program or a contribution rate increase; 2
(B) make contributions at a rate different than the default rate 3
established by the administrator; 4
(C) increase contributions at a rate different than the default 5
rate established by the administrator; 6
(4) any person who earns compensation in this state is eligible to 7
voluntarily enroll in the program. 8
(d) The state, the program, and the administrator 9
(1) may not guarantee a specific rate of return or interest for a 10
contribution; 11
(2) are not liable for any loss incurred by a participant as a result of 12
participating in the program; 13
(3) have no proprietary interest in contributions to, or earnings on 14
amounts contributed to, participant accounts. 15
(e) Nothing in AS 44.25.400 - 44.25.490 prohibits an employer from 16
establishing an alternative retirement plan for the employer's employees. 17
Sec. 44.25.410. Purpose of program. The administrator is the trustee of all 18
contributions and earnings on amounts contributed to participant accounts. The 19
administrator's primary mission is to 20
(1) develop a retirement program for employees in this state who are 21
not offered a qualified retirement plan by an employer; 22
(2) conduct a market and legal analysis of the program; and 23
(3) facilitate the investment of funds contributed to participant 24
accounts. 25
Sec. 44.25.420. Powers and duties of the administrator. (a) The 26
administrator shall 27
(1) develop and administer the program; 28
(2) adopt regulations to implement AS 44.25.400 - 44.25.490; 29
(3) establish a process for enrollment in the program, including 30
automatic employee enrollment and a process for an employee to opt out of the 31
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program; 1
(4) direct the investment of funds contributed to participant accounts 2
and professionally manage participant accounts, consistent with 3
(A) investment restrictions established by the administrator; 4
and 5
(B) standards of prudence; 6
(5) provide a range of investment options and establish the rules by 7
which a participant may direct the participant's investments among those options; 8
(6) obtain an external performance review to evaluate the investment 9
policies of the program and include the results in the report provided under (7) of this 10
subsection; 11
(7) by the first day of each regular legislative session, report to the 12
governor and legislature on the financial condition of the program; 13
(8) develop an annual operating budget; 14
(9) in accordance with Internal Revenue Code limits, set a minimum, 15
maximum, and default contribution rate and set a default rate for contribution 16
increases; 17
(10) allow a participant to adjust the rate of contributions to the 18
participant's account and the rate of increases to the contribution rate; 19
(11) establish a process to allow a participant to make contributions, in 20
addition to the participant's contributions through payroll deduction, to the 21
participant's account, including contributions from the participant's permanent fund 22
dividend; 23
(12) establish a process to allow a participant to withdraw funds from a 24
program account; 25
(13) deposit a contribution to the program directly in a participant 26
account; 27
(14) maintain separate records and accounting for each participant 28
account; 29
(15) provide program and account status reports to participants at least 30
once a year; 31
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(16) allow participants to maintain a program account regardless of 1
employer; 2
(17) keep fees assessed to defray program administration costs low; 3
(18) disclose to employees, employers, and program participants 4
(A) the benefits and risks of contributing to the program; 5
(B) instructions on contributing to the program and changing 6
contribution rates; 7
(C) the process to opt out of the program; 8
(D) the process to withdraw funds from a participant account; 9
(E) how to obtain additional program information; 10
(F) that the program is not an employer-sponsored retirement 11
plan; 12
(G) that financial advisors are best positioned to provide 13
financial advice and that employers are not liable for employee financial 14
decisions under AS 44.25.400 - 44.25.490; 15
(H) that the state, the program, and the administrator do not 16
guarantee participant accounts or a rate of return; 17
(I) how an employee may file a complaint against an employer 18
who fails to facilitate employee participation in the program; 19
(19) to the extent practicable, develop and administer the Alaska Work 20
and Save Program to allow employees in the state to benefit from applicable 21
incentives for retirement savings that may be created or allowed by federal law. 22
(b) The administrator may 23
(1) contract for services necessary to execute the administrator's 24
powers and duties; 25
(2) employ outside investment advisors to review investment policies; 26
(3) establish and collect fees to defray program administration costs; 27
(4) consider and purchase pooled private insurance for the program; 28
(5) develop and conduct outreach about the program and retirement 29
savings; 30
(6) when prudent or necessary to do so for the benefit of the program, 31
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enter into agreements, including contracts, memoranda of understanding, partnerships, 1
or other arrangements, with other governmental entities, including other states, or 2
agencies or instrumentalities of other states, that maintain or are establishing 3
retirement savings programs compatible with or similar to the program; 4
(7) change the default contribution rate and default rate for 5
contribution increases; 6
(8) use private sector partnerships to administer and invest 7
contributions to the program; 8
(9) access information held by, and enter into service agreements with, 9
other departments and agencies of the state. 10
Sec. 44.25.430. Confidentiality of information. (a) Individual account 11
information for participant accounts, including an account holder's name, address, 12
telephone number, personal identification information, contributions, earnings, and 13
account balance, is confidential and not subject to disclosure as a public record. 14
(b) The identity of an employee who files a complaint under AS 44.25.440 is 15
confidential unless the employee waives confidentiality. 16
(c) Notwithstanding (a) of this section, individual account information may be 17
disclosed 18
(1) to the extent necessary to administer the program in a manner 19
consistent with the tax laws of the state and the Internal Revenue Code; or 20
(2) if the account holder expressly agrees to the disclosure, in writing. 21
Sec. 44.25.440. Employer compliance. (a) An employee may file a complaint 22
with the administrator alleging that an employer subject to AS 44.25.400 - 44.25.490 23
failed to facilitate employee participation in the program. 24
(b) The administrator may investigate, in response to a complaint or on the 25
administrator's own initiative, whether an employer is facilitating participation of the 26
employer's employees in the program as required under this section. If the 27
administrator determines that the employer failed to facilitate employee participation 28
in the program, the administrator may provide advice and training to the employer. 29
Sec. 44.25.490. Definitions. In AS 44.25.400 - 44.25.490, 30
(1) "administrator" means the commissioner of revenue or the 31
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commissioner's designee; 1
(2) "employee" has the meaning given in AS 23.30.395; 2
(3) "employer" means a person or business that has employed more 3
than five other persons in the state for not less than three years and does not provide a 4
qualified retirement plan to employees; 5
(4) "program" means the Alaska Work and Save Program; 6
(5) "qualified retirement plan" includes a plan qualified under 26 7
U.S.C. 401(a) or (k), 403(a) or (b), 408(k) or (p), or 457(b) (Internal Revenue Code). 8
* Sec. 6. This Act takes effect January 1, 2027. 9