A new law making it easier for companies to automatically enroll their employees in pension plans such as 401(k)s goes into effect soon, the Labor Department said Monday, a move the government hopes will spur increased retirement savings. The enactment of the Pension Protection Act in December "will help many more workers and their families build a nest egg for a secure and comfortable retirement," Labor Secretary Elaine Chao said. The Labor Department plans to publish the final rules on Wednesday, and the law goes into effect 60 days later. By making it easier to companies to include workers in pension plans, department officials estimate retirement savings in 401(k)-type plans could increase by as much as $134 billion by 2034.
See "Pension Law Addresses Auto-Enrollment", Jesse J. Holland, San Francisco Chronicle, October 21, 2007