Bill > S1831

This bill modifies existing retirement plan regulations to allow for periodic automatic reenrollment in retirement savings plans, specifically for qualified automatic contribution arrangements (QACAs) and eligible automatic contribution arrangements (EACAs). The bill permits employers to automatically reenroll employees in retirement contributions after a set period of 1-3 years, unless the employee makes a new affirmative election to opt out. This means that if an employee previously chose not to contribute to their retirement plan, they would be automatically re-enrolled in contributions at a standard percentage after 1-3 years, helping to encourage consistent retirement savings. The bill amends sections of the Internal Revenue Code and the Employee Retirement Income Security Act to enable this periodic automatic reenrollment process. Specifically, it allows plan administrators to implement a system where an employee's previous election to not contribute automatically expires after a set time, and they are then automatically returned to making contributions unless they actively choose otherwise. The bill aims to help employees maintain retirement savings momentum and increase participation in workplace retirement plans by making reenrollment a default option with an easy opt-out mechanism.

Health and Social Services

https://www.congress.gov/bill/119th-congress/senate-bill/1831/all-info