Bill would protect plans from automatic enrollment liability

Rep. Rahm Emanuel, D-Ill., plans to introduce legislation next week that would protect companies from liability for losses suffered by participants automatically enrolled in company-sponsored defined contribution plans, according to Mr. Emanuel's office. The 401(k) Automatic Enrollment Act would make it easier for companies to use lifecycle or balanced funds as the default option for employees who are automatically enrolled in the plan and it would enable employers to automatically increase employees' contributions over time or whenever they get a pay raise. The bill would also confirm that employers would not violate state laws by automatically enrolling workers in retirement plans without their signatures.