[Congressional Record Volume 168, Number 36 (Monday, February 28, 2022)]
[Senate]
[Page S838]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. KAINE:
S. 3712. A bill to amend the Internal Revenue Code of 1986 and the
Employee Retirement Income Security Act of 1974 to provide for periodic
automatic reenrollment under qualified automatic contribution
arrangements, and for other purposes; to the Committee on Health,
Education, Labor, and Pensions.
Mr. KAINE. Mr. President, today I am introducing the Auto Reenroll
Act of 2022, alongside Representative Kathy Manning, who has introduced
companion legislation in the House of Representatives. Enacting this
bill would improve financial security for Americans by strengthening
their private retirement savings.
Nearly 7 in 10 Americans working in the private sector have access to
employer-sponsored retirement plans, but a quarter of those with access
do not participate in those plans. This means less money saved for
retirement. Often, it means leaving money on the table, in the form of
employer-matching contributions. Encouraging more employees to
participate in their workplace plans would increase their overall
compensation and improve their financial security and retirement
outlook.
The Auto Reenroll Act of 2022 would boost participation through a
simple change to the automatic enrollment safe harbor. Automatic
enrollment plans have been tremendously successful at encouraging
workers to participate in employer-sponsored plans, but employees who
opt out of participating at the beginning of their tenure will likely
never reconsider that decision. This bill would build on the success of
auto enrollment by having employers reenroll nonparticipants once every
3 years, providing them another opportunity to consider participation.
This would encourage those employees to reassess their nonparticipation
as their financial situation evolves.
I encourage my colleagues to support this commonsense legislation to
bolster private retirement savings.
______