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Democrats Aim to Push Firms Into Auto-Sign-Up Retirement Plans

Sept. 7, 2021, 8:52 PM

House Democrats proposed requiring companies to automatically enroll workers for IRAs or 401(k)-type retirement plans under a provision tucked into draft legislation enacting the bulk of President Joe Biden’s economic plan.

The proposal addresses a problem that has been exacerbated by the coronavirus pandemic: Americans haven’t saved enough for retirement. Nearly half of people aged 55 or older have nothing saved for after they stop working, according to a 2019 U.S. Government Accountability Office report.

The draft legislation, unveiled by the House Ways and Means Committee on Tuesday, would direct 6% of each employee’s pay into a retirement ...

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