Voya Financial announces support of ‘Auto Reenroll Act of 2023’ for workplace retirement plans
04 August 2023 - 12:00AM
Business Wire
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.
VOYA-RET
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version on businesswire.com: https://www.businesswire.com/news/home/20230803809722/en/
Media: Laura Maulucci Voya Financial (508) 353-6913
Laura.Maulucci@voya.com
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