Legislation moving through Congress would prompt more employers to automatically enroll new employees in 401(k) or similar defined contribution retirement plans and to increase participants’ savings rates over time. Even without new mandates to do so, however, more employers are adopting automatic features to increase employee participation and to encourage employees to save enough for a secure retirement.
On March 29, the House overwhelmingly approved the bipartisan Securing a Strong Retirement Act by a vote of 414-5. The bill is dubbed “SECURE Act 2.0” because it builds on the Setting Every Community Up for Retirement Enhancement (SECURE) Act, signed into law in December 2019.
