4/25/16 Group Watch: IRAs for New State Hires?
This week the Alabama House of Representatives approved a bill that would enroll new state employees in individual retirement accounts. The legislation would automatically enroll state employees hired after January 1, 2017, in an individual retirement account. The initial contribution rate would be set at 1.5 percent, though employees could adjust that to a higher rate. One member said that this mechanism would encourage employees to plan for inflation if there were to be no more cost-of-living adjustments for retirees. This bill now goes to the Senate in the waning days of the 2016 regular session.
