These provisions offer many new benefits to employers and employees which are designed to make it more attractive for employers to offer retirement plans and to improve retirement outcomes for employees.

On December 29, 2022, the Consolidated Appropriations Act of 2023 (HR 2617) was signed into law. The Act includes important provisions affecting retirement savings plans which are intended to build upon the 2019 SECURE Act. These provisions, collectively referred to as SECURE 2.0, offer many new benefits to employers and employees which are designed to make it more attractive for employers to offer retirement plans and to improve retirement outcomes for employees.

Below is a summary of selected provisions with potentially broad effect. However, the Act includes some 90 provisions affecting retirement savings plans. Employers will need to consult with appropriate legal counsel and other professionals to assess what changes may be relevant to their circumstances.

Automatic Enrollment. Employers who start new retirement plans after December 29, 2022 will, beginning in 2025, be required to automatically enroll employees in their retirement plan at a rate of at least three percent, but not more than 10 percent of eligible wages. Employees may opt out. New companies (in business for less than three years) and employers with 10 or fewer workers are excluded from this requirement.

An Automatic Enrollment plan must allow employees to withdraw automatic contributions and any...

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