For plans using automatic enrollment, “the most dramatic increases in enrollment rates are among younger, lower-paid employees, and the racial gap in participation rates is nearly eliminated among employees subject to auto-enrollment,” which increases participation among some participants from 17% to 75%, according to the Senate Appropriations Committee, which cited a study by Ariel/Aon-Hewitt.
“We are grateful to the many members of Congress and staff who worked tirelessly to get SECURE 2.0 included in the omnibus legislation expected to be enacted this week,” said Brian Graff, CEO of the American Retirement Association.
“This important legislation will enhance the retirement security of tens of millions of American workers—and for many of them give them the opportunity for the first time to begin saving.”
Congress hopes to pass the massive full-year government funding bill by midnight on Friday to avert a government shutdown, and the tight deadline leaves little room for error. But financial services industry executives are optimistic the package will pass.
“We don’t expect impediments,” IRI spokesman Dan Zielinski said.