AUTOMATIC 401(k) ENROLLMENT:
Is It Right For Your Organization?
Originally Presented On:
Thursday, May 15, 2008
Background
The Pension Protection Act of 2006 paved the way for thousands of new employees to be automatically enrolled in their companies’ 401(k) plans. It did so by providing an ERISA preemption to state laws that prohibit employers from taking payroll deductions without employees’ written permission.
In November 2007, the U.S. Department of Labor (DOL) issued two sets of proposed regulations that covered both automatic 401(k) enrollment and Qualified Default Investment Alternatives (QDIAs). QDIAs protect plan sponsors from liability when allocating automatic contributions.
Recent surveys have shown that the automatic enrollment feature is rapidly growing in popularity for two main reasons:
1. Employers are committed to raising 401(k) participation levels. Research shows that one of the biggest barriers to participation is inertia: Employees mean to enroll but just don’t get around to it. Employers can help employees overcome this inertia by automatically enrolling them in the plan.
2. Adding an automatic enrollment feature to the plan often dramatically improves non-discrimination test results. This makes administration of the plan much easier and allows executives to maximize their contributions.
In this recording, Judy Simons, VP and Senior Consultant of TRI-AD benefits consulting, will discuss what you need to know about implementing a 401(k) auto enrollment plan in your organization.
AUTOMATIC 401(k) ENROLLMENT:
Is It Right For Your Organization?
Originally Presented On:
Thursday, May 15, 2008
You will discover:
How do you know whether to incorporate an Eligible Automatic Contribution Arrangement or Qualified Automatic Contribution Arrangement in your plan?
Which type of contribution (pre-tax or Roth) should you use?
What qualifies an investment as a Qualified Default Investment Alternative (QDIA)?
How do you determine what percentage of an employee’s pay to contribute?
How does it work? When does withholding start?
How can you decrease opt-outs of your organization’s 401(k) plan?
What types of notification must be given to employees? When?
What are the legal considerations for implementation?
What are the challenges of auto enrollment and how can they be overcome?
How do you know if it is right for your organization?
Who Should "Listen In"
HR Professionals/managers/directors
Small business owners
Policy decision makers
Benefits decision makers
Featured Speaker
Judy Simons, CPC, QPA, QKA, is a Senior Consultant and Vice President at TRI-AD benefits consulting group. Ms. Simons oversees regulatory compliance functions. She has many years of experience designing, administering, and consulting for defined benefit pension plans and defined contribution plans including 401(k), profit sharing, money purchase, target benefit pension, stock bonus, and employee stock ownership plans.
Ms. Simons received her Bachelor of Science degree in Accounting from San Diego State University. She has obtained Certified Pension Consultant (CPC), Qualified Pension Administrator (QPA), and Qualified 401(k) Administrator (QKA) designations through the American Society of Pension Professionals and Actuaries.
Ms. Simons participates in a number of industry organizations. She currently is a Past President of the San Diego Chapter of the Western Pension & Benefits Conference and a member of the American Society of Pension Professionals and Actuaries. She is a frequent speaker on retirement design and administration topics.
Home
