U.S. Senators Bill Cassidy and Tim Kaine have introduced the Auto Reenroll Act, a legislative proposal aimed at increasing participation in employer-sponsored retirement plans. The bill seeks to provide more frequent opportunities for employees to opt into these plans and take full advantage of employer match offers.
"Americans should have every opportunity to invest for a secure retirement," stated Dr. Cassidy, emphasizing the importance of auto-reenrollment in helping workers manage their finances effectively.
Senator Kaine highlighted the significance of employer-sponsored retirement plans in ensuring long-term financial security for Americans. "That’s why it’s important that we make it easier for more workers to take full advantage of these opportunities," he said, expressing his support for the bipartisan initiative with Senator Cassidy.
Statistics indicate that one in four American workers are not enrolled in their employer-sponsored retirement plans, while one-third do not fully utilize available employer matching contributions. This lack of participation is often due to initial decisions made when employees are hired or earning entry-level wages, leading many to mistakenly believe they are enrolled.
The Auto Reenroll Act proposes amendments to safe harbors within the Employee Retirement Income Security (ERISA) and Internal Revenue Code. These changes would allow plan sponsors to reenroll non-participating employees at least once every three years unless they choose to opt out again.
The legislation has received endorsements from organizations such as AARP, the American Benefits Council, American Retirement Association, Edward Jones, Empower, LPL Financial, Nationwide Retirement Solutions, and Transamerica.
For further information on this development or other updates from HELP Republicans, visit their website or follow them on Twitter at @GOPHELP.
