Auto Reenroll Act of 2025

Automatic Reenrollment in Savings Plans: Under Section 2(a)(1), a qualified automatic contribution arrangement would not fail its requirements if an employee's election to stop contributions terminates after a period of one to three years. This results in the employee being treated as having made a new election to contribute unless they make a new affirmative election.

Inclusion of Previously Disregarded Employees: According to Section 2(a)(2)(B), a "previously disregarded employee"—someone who previously elected not to participate in an arrangement—may be treated as an employee who has made an election to participate.

Streamlined Participation for Eligible Arrangements: Section 2(b) allows for periodic automatic deferral in eligible automatic contribution arrangements. A participant's election not to have contributions made can terminate after one to three years, at which point they are treated as having made an election to contribute at a uniform percentage level unless they make a new election not to do so.

Requirement for Affirmative Action to Stop Contributions: As noted in Section 2(a)(1)(II) and Section 2(b)(i)(ii), once an employee's termination of contributions expires, they are treated as having made a new election to contribute. This means the individual must proactively make a new affirmative election if they do not want the automatic contributions to resume.

Time-Bound Termination of Elections: Under Section 2(a)(1)(I) and Section 2(b)(i), an employee's election to stop contributions is limited to a period of not less than one year and not more than three years before the reenrollment process occurs.