Automatic enrollment has been hailed as an effective tool for getting more employees to save for retirement and to save more.
However, there are several factors to consider when deciding whether and how to implement automatic enrollment before making it a done deal (see “Making the Best Auto Enrollment Decisions”).
The Paragon Alliance Group, LLC, a regional benefits consulting and third-party administration firm, has developed a new whitepaper that is designed to provide insight into the pros and cons of auto enrollment, and why it may or may not be suitable for all plan sponsors.
The white paper provides key information for plan sponsors and plan advisers about:
- The traditional approach to 401(k) or 403(b) plans;
- Why auto enrollment was developed as a plan design feature to overcome some problems in traditional 401(k) or 403(b) plans;
- Auto enrollment options;
- Why proper oversight and execution is critical to avoid costly plan corrections;
- Business benefits if designed, implemented and managed correctly; and
- Critical questions to consider.
The white paper may be downloaded from the Paragon website.