How Secure 2.0 Looks To Increase Plan Participation

It took a long time, but SECURE 2.0 finally became law at the end of last year. And it has the potential to affect workplace retirement savings in a big way. Here are some more thoughts about a few of the law changes Carol Buckmann mentioned in her late December post (SECURE 2.0 Is Finally Passed with Gifts for Everyone). In this article, we address how the new law can increase workplace retirement plan participation and savings rates. Plan sponsors and administrators should take note to keep up with this evolving area.

Mandatory Automatic Enrollment and Escalation Requirements for New 401(k) and 403(b) Plans. The new mandatory enrollment and automatic deferral requirements are potentially the most impactful changes for increasing workplace savings. Most new 401(k) and 403(b) plans – but not existing plans, church and government plans and plans for small businesses with 10 or fewer employees or plans for businesses less than 3 years old – will be required to enroll