House of Representatives Approves Retirement Bill for New State Hires

A bill passed in the Alabama House of Representatives would automatically enroll new state employees in individual retirement accounts.

The House on Tuesday voted 91 to 10 for the legislation, which would apply to new hires after Jan. 1.

Republican Rep. Phil Williams’ bill sets the automatic contribution rate at 1.5 percent of the employee’s pre-tax income, though the employee can adjust that at the time of enrollment.

Williams says no one is forced to use the system. The bill allows enrollees to opt out of the accounts.

Democratic Rep. Pebblin Warren says she doesn’t see the point of auto-enrollment when many state employees are “living from paycheck to paycheck” and may not be able to afford to save.

The bill will now go to the Senate for a vote.

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