(Source: ASPPA - American Society of Pension Professionals and Actuaries) For all the good press and positive results that automatic enrollment gets, one might well expect that every plan would embrace it. And yet today, nearly a decade after the passage of the Pension Protection Act, many still don't. So, why don't all plans use automatic enrollment - and what can you do about it? Here are the primary objections that I have heard from plan sponsors - and some possible responses. Cost. The simple reality is that automatic enrollment 'works,' which is to say that overnight, it has the very real potential of transforming a long-standing plan participation rate of 67% or 75% to 95% or greater....
↧