An Automatic Contribution Arrangement is a feature in some workplace retirement plans where a portion of an employee’s paycheck is automatically directed into their retirement account, unless they choose to opt out or change the amount. This setup is designed to make saving easier by helping people start building their retirement savings without having to take any action themselves. The contributions are usually a set percentage of pay and can be invested in default investment options chosen by the plan. Employees can typically change the amount they save or stop contributions at any time.