Automatic Retirement Enrollment: The New Norm for Benefits?

• Overview

Find out if an automatic enrollment retirement plan is right for your company.Many retirement plans are encouraged to implement automatic enrollment with vendors ensuring it is the 'new norm'. However, many companies are unaware of the potential fiduciary pitfalls and operational hurdles automatic enrollment can introduce. This topic will outline types of automatic contribution arrangements, address common errors in implementation, and introduce frequently overlooked considerations regarding the provision. This material will also provide guidance on the determination of the appropriateness of automatic contribution arrangements for your group and give Plan Sponsors and HR professionals tools to review or implement processes to ensure compliance with regulations. There may be a place for automatic enrollment, but not at the cost of jeopardizing your Plan's operational integrity or your fiduciary duty.

Authors

Genelle Brakefield, ERPA, QKA, TGPC, QPFC, Ekon Benefits Keith Kowalczyk, ASA, MSPA, AAA, EA, Ekon Benefits

Agenda

Automatic Enrollment History and Types

• ACA

• EACA

• QACA

• Automatic Escalation

When They Go Right

• Good Candidates for Auto Enroll Features

• Benefits of Automatic Enrollment

When They Go Wrong

• Operational Hurdles

• Fiduciary Breaches

• Unforeseen Side Effects

The Bigger Worry… Retirement Readiness

• Participant Perceptions

• Premature Withdrawals

• Increased Participant and Administrative Costs

• Investor Confidence