The Autopilot Impact Tool analyzes the information and calculates the effect, providing a breakdown of how the adoption of auto enrollment and auto contribution increases will impact plan participation, plan deferral rates, and overall plan costs.
The tool also demonstrates how any potential increase in plan costs could be offset by PPA “Safe Harbor’ regulations, which can exempt sponsors from compliance testing and contribution caps for highly compensated participants.
James Mallozzi, senior vice president and head of Marketing, Product, and Advisory Services, Prudential Retirement, notes that Prudential Retirement’s Autopilot Impact Tool allows for the evaluation of a wide variety of variables for plan sponsors. For example, when assessing the impact of the automatic enrollment feature, the tool permits a number of different initial contribution rates to determine which works best for the plan and for participants.
Similarly, the tool can analyze the impact of different contribution-increase schedules, comparing and contrasting the effect of, say, a one percent per-year increase with a two percent per-year increase, according to a press release.
For more information on Prudential Retirement’s Autopilot Impact Tool, please call 1.800.353.2847.