Save More for Retirement Act of 2005

The Save More for Retirement Act of 2005 (S. 875) aims to increase retirement savings by encouraging employers to adopt "automatic enrollment" for 401(k) plans. Under this bill, new employees would be automatically signed up for their company’s retirement plan unless they specifically choose to opt out.

The legislation would require these plans to include automatic annual increases in employee contributions—up to 10% of their salary—and would mandate that employers provide matching contributions or non-elective contributions to ensure the plan remains fair for all workers. Additionally, the bill simplifies federal regulations to protect employers from certain state laws that might restrict automatic enrollment, while requiring that employees receive clear notice of their rights and investment options.