Sen. Tim Kaine (D-VA) and Rep. Kathy Manning (D-NC) have introduced legislation to increase workers’ participation in employer-sponsored retirement plans by encouraging retirement plans to automatically reenroll workers in their plans.
The Auto Reenroll Act of 2022 would also provide workers with the option to opt out. The bill’s sponsors note that while many employers automatically enroll their employees in retirement savings plans when they start the job, many employees initially decide to opt out. This bill would prompt those who opt out of a retirement savings plan to reconsider their choice every three years—and that, according to the bill’s sponsors, would “lead to more workers benefiting from employer matches during their careers.”
The legislation would enhance auto-enrollment plans by amending safe harbors in ERISA and the Internal Revenue Code to encourage plan sponsors to reenroll non-participants at least once every three years, unless the individual affirmatively opts out again.
