Legislation builds on SECURE 2.0, providing workers an opportunity for greater access to retirement savings
Supports Voya data finding 85% of Americans agree it is important for employers to offer automatic features in retirement plans
Voya Financial, Inc. (NYSE: VOYA), a leading health, wealth and investment company, announced today that it supports — and encourages Congress to consider passing — the “Auto Reenroll Act of 2023,” a newly introduced bipartisan legislation brought forth by Senators Bill Cassidy and Tim Kaine of the Senate Health, Education, Labor, and Pensions Committee. The bill aims to encourage more working Americans to enroll in a workplace retirement plan.
“Since the enactment of the Pension Protection Act of 2006, we have seen how automatic enrollment of workers into retirement plans has helped Americans better save for their future,” said Rob Grubka, CEO, Workplace Solutions at Voya Financial. “Knowing the impact that additional automatic features could have on the retirement savings of individuals, we strongly support the introduction of the Auto Reenroll Act of 2023. And we remain encouraged that Congress views it as a priority that individuals have the resources they need for a successful retirement.”
Voya believes the newly introduced legislation, which builds off the recently passed SECURE 2.0 Act of 2022, could ultimately help drive greater participation and further improve retirement readiness for individuals. According to research from Voya, American workers are also in favor of automatic enrollment: A majority (85%) of working Americans agree it is important for employers to offer automatic retirement plan features to help them save for the future (e.g., automatic plan enrollment or increases in regular plan contributions).1
The use of auto features in retirement plans remains an area of focus for Voya as the company’s recent research revealed that features such as auto enrollment seemingly increase overall plan participation and also show an opportunity to help close gaps among all employee populations. More specifically, Voya’s research examined the differences between employees who were and were not subject to automatic plan features, including automatic plan enrollment.
“We know from our research that many working individuals today are largely under-saved. Specifically, we have found that most Black/African American (Black) and Hispanic/Latino (Latino) employees have lower retirement plan participation rates; however, the gap closes significantly in plans that offer automatic enrollment, where Black and Latino employees have a two to three times higher participation rate2 compared to their peers at employers who do not offer automatic enrollment,” said Tom Armstrong, vice president, Customer Analytics and Insight, and head of the Voya Behavioral Finance Institute for Innovation. “At Voya, we believe that the use of automatic features — including auto enrollment, auto escalation and re-enrollment — can help drive participation and help create a more secure financial future for individuals. In many ways, this proposed legislation could provide for added support in this area.”
To provide greater opportunity for retirement plan participation, specifically within small businesses, Senators Cassidy and Kaine have also proposed an annual tax credit for small employers who adopt automatic enrollment features. Voya also agrees with providing greater opportunity to support the employees within these businesses so they can become better prepared for retirement. Offering support for small employers would not only help increase retirement savings for their workforce, but it would it also provide employees with greater access to workplace retirement plans overall.
As an industry leader focused on the delivery of health, wealth and investment solutions to and through the workplace, Voya Financial is committed to delivering on its mission to make a secure financial future possible for all — one person, one family, one institution at a time.
1. Results of a Voya Financial survey conducted Oct. 10-11, 2022, on the Ipsos eNation omnibus online platform among 1,004 adults (461 working Americans) aged 18+ in the U.S.
2. Voya DEI Research Analysis, June 2022. Research included more than 163,000 employees across various industries.
About Voya Financial®
Voya Financial, Inc. (NYSE: VOYA), is a leading health, wealth and investment company with 7,200 employees who are focused on achieving Voya’s aspirational vision: Clearing your path to financial confidence and a more fulfilling life. Through products, solutions and technologies, Voya helps its 14.7 million individual, workplace and institutional clients become well planned, well invested and well protected. Benefitfocus, a Voya company, extends the reach of Voya’s workplace benefits and savings offerings by providing benefits administration capabilities to 16.5 million individual subscription employees across employer and health plan clients. Certified as a “Great Place to Work” by the Great Place to Work® Institute, Voya is purpose-driven and committed to conducting business in a way that is economically, ethically, socially and environmentally responsible. Voya has earned recognition as: one of the World’s Most Ethical Companies® by the Ethisphere Institute; a member of the Bloomberg Gender-Equality Index; and a “Best Place to Work for Disability Inclusion” on the Disability Equality Index. For more information, visit voya.com. Follow Voya Financial on Facebook, LinkedIn and Instagram.