A Primer on Public Sector Automatic Enrollment
Automatically enrolling participants is one of the most effective methods for increasing participation in defined contribution retirement plans. However, while automatic enrollment was universally authorized in the private sector more than a decade ago through the Pension Protection Act of 2006, public sector defined contribution plans were not included in the legislation. For public sector plans, each state is responsible for determining whether or not they will allow automatic enrollment, and many states have laws preventing its establishment. This has created a muddled landscape that is highly localized with little consistency across states.
Automatic Enrollment Guide
Is your Plan considering pursuing auto enrollment legislation in your state? The Auto Enrollment Guide provides the information you need to get started. Developed by NAGDCA’s Legislative Committee, the toolkit includes an overview and in-depth guide for plan sponsors, FAQs, a customizable handout for use with policymakers, and model legislation to assist in your state’s advocacy efforts.
Automatic Enrollment Map
This tool describes who is allowed to implement automatic enrollment, who is not, and also shows the relevant laws in each state. Click on any state to learn more.
| States Allowing Auto Enrollment | States Preventing Auto Enrollment | States Allowing Some Auto Enrollment |
|---|---|---|
| 9 | 25 | 16 |
Yes – Automatic Enrollment Allowed for All Public Sector Plans
No – Automatic Enrollment Legally Prohibited for All Public Sector Plans
No – Automatic Enrollment Legally Prohibited (Unless it is Collectively Bargained)
Partial – Automatic Enrollment Legally Allowed for Some Public Sector Plans
Recently Proposed Laws Affecting Public Sector Automatic Enrollment
Florida – House Bill 985 (Introduced February 24, 2025)
Florida’s HB 985 aims to enhance retirement savings for public employees by introducing automatic enrollment in the state’s deferred compensation plan. Under this bill, government employees would have a portion of their compensation automatically deducted and contributed to the plan unless they opt out or select a different contribution rate.
New Jersey – Assembly Bill A4562 (Introduced April 2025)
Assembly Bill A4562, introduced by Assemblywoman Rosaura Bagolie, proposes to expand automatic enrollment in New Jersey’s public sector retirement plans. If enacted, the bill would permit the state, as well as counties and municipalities, to adopt automatic enrollment features for their employees.
Recently Passed Laws Affecting Public Sector Automatic Enrollment
Washington – As of 2025, automatic enrollment is permissible for all public employers in Washington, including counties, municipalities, and other political subdivisions—regardless of whether they participate in the state’s deferred compensation plan. Under HB 1270, political subdivisions offering their own 457 deferred compensation plan may now automatically enroll newly hired employees, provided the employee has the option to affirmatively opt out.
This builds on a 2017 law that required automatic enrollment for all newly hired full-time state employees in the state’s 457 plan (unless the employee opted out). Political subdivisions participating in the state plan have been allowed to opt into auto enrollment since that time, but HB 1270 expands this authority to subdivisions operating their own plans.
For questions related to this page, or if you are a plan administrator with information for your state, please contact us here.