Senators Introduce Legislation to Increase Retirement Savings Participation

Two senators introduced legislation Wednesday that would offer workers more opportunities to be included in employer-sponsored retirement plans and benefit from the maximum match offered by their employers.

Under current law, employees who opt out of automatic retirement contributions remain unenrolled unless they eventually choose to opt in. The proposed legislation, the Auto Reenroll Act of 2025, would change that by permitting plan sponsors to automatically reenroll employees every one to three years. Employees who are automatically re-enrolled may, once again, opt out of the plan after being reenrolled.

The bill was introduced by Senator Bill Cassidy, R-Louisiana, chair of the Senate Committee on Health, Education, Labor and Pensions, and Senator Tim Kaine, D-Virginia, a member of the committee.

“For many Americans, employer-sponsored retirement plans become a crucial part of their long-term financial security,” Kaine said in a statement. “That’s why it’s important that we make it easier for more workers to take full advantage of these opportunities.”

According to the senators, the bill would help reduce the number of American workers who are not enrolled in employer-sponsored retirement plans and those failing to maximize their employer’s contribution.

The senators also argue that auto-reenrollment would assist in reducing the number of workers who are confused about their retirement plan participation.

“Americans should have every opportunity to invest for a secure retirement,” Cassidy said in a statement. “Auto-reenrollment enables workers to be in better control of their finances so they can be ready for retirement.”

Chris Spence, head of federal government relations and public policy at TIAA, said the bill would specifically improve retirement outcomes for workers in lower income brackets.

“The Auto Reenroll Act takes a voluntary approach to simplify and automate retirement savings by spurring more employers to reengage employees—especially younger and lower-income workers who may have previously opted out—to re-enroll in their workplace,” Spence said in a statement.