New SECURE 2.0 provisions for 401(k) and 403(b) auto-enrollment kicked in 2025, and a new Auto Reenroll Act bill would take this mandate a step further, by requiring employers to re-enroll employees every three years.
On Wednesday, U.S. Senators Tim Kaine (D-VA), a member of the Senate Health, Education, Labor and Pensions (HELP) Committee, and Senator Bill Cassidy, M.D. (R-LA), the HELP Committee Chair, introduced the Auto Reenroll Act, legislation to help American workers take advantage of their available employer-sponsored retirement plans and full employer match by permitting more frequent opportunities for employees to opt in.
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“For many Americans, employer-sponsored retirement plans become a crucial part of their long-term financial security,” said Kaine. “That’s why it’s important that we make it easier for more workers to take full advantage of these opportunities … so more Americans can get enrolled and improve their financial footing.”
“Americans should have every opportunity to invest for a secure retirement,” said Dr. Cassidy. “Auto-reenrollment enables workers to be in better control of their finances so they can be ready for retirement.”
One in four American workers are not enrolled in their employer-sponsored retirement plans, and one-third are not taking advantage of their full employer matching contribution, noted the Senators. Many employees “choose not to participate in these programs when they are first hired or making entry level wages, but then may never be promoted to reconsider that decision or increase their contribution as their income increases. That can lead to significant confusion—59% of workers who are not participating in their workplace plans thought they were participating when surveyed.”
The Auto Reenroll Act would permit plan sponsors to reenroll non-participants at least once every three years, unless the individual affirmatively opts out again.
The legislation is endorsed by AARP, the American Benefits Council, American Retirement Association.
“The Auto Reenroll Act of 2025 represents a pivotal step forward in strengthening America’s retirement system,” said American Retirement Association CEO Brian Graff. “By facilitating automatic reenrollment, this legislation ensures that workers who may have previously opted out are given another opportunity to start saving for their future …we are proud to support a measure that promotes financial security and helps close the retirement savings gap across all communities.”
Related: SECURE 2.0’s new auto-enrollment rule needs further clarification, say industry groups
“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 sponsored retirement plan and continue building and contributing to their retirement savings,” said Chris Spence, TIAA Head of Federal Government Relations & Public Policy.
“We commend Senators Kaine and Cassidy for their bipartisan leadership … and urge Congress to act on this commonsense approach to address retirement savings gaps and improve retirement outcomes for more American workers.”
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Lynn Cavanaugh
Lynn Varacalli Cavanaugh is Senior Editor, Retirement at BenefitsPRO. Prior, she was editor-in-chief of the What's New in Benefits & Compensation newsletter. She has worked for major firms in the employee benefits space, Vanguard and Willis Towers Watson, as well as top media companies, including Condé Nast and American Media.
