Automatic enrollment

Automatic Enrollment

An employer-sponsored retirement plan in which the employer is able to enroll an employee without that employee's express authorization. The employer determines what percentage of the employee's salary or wages is contributed to the plan. The employee is able to change this percentage and can even refuse enrollment in the plan, but he/she must do so in writing.

Automatic enrollment.

Your employer has the right to sign you up for your company's 401(k) plan, in what's known as an automatic enrollment. If you don't want to participate, you must refuse, in writing, to be part of the plan.

In an automatic enrollment, the company determines the percentage of earnings you contribute and how your contribution is invested, choosing among a number of potential alternatives. You have the right to change either or both of those choices if you stay in the plan.

References in periodicals archive ?
In automatic enrollment plans, nearly two-thirds of millennials were also enrolled in an automatic increase feature.
The survey covers a wide variety of topics relevant to plan sponsors and the industry at large, including data on participation rates, catch-up contributions, company contributions, asset allocation, investment options, company stock, professional management, investment advice, automatic enrollment, and more.
May 29 /PRNewswire/ -- MassMutual's Retirement Services Division has released a new research paper regarding the use of target retirement date investments as the default option for retirement plans with automatic enrollment.
The Pension Protection Act (PPA) of 2006 made it easier for plan sponsors to help participants achieve a diversified investment portfolio by providing a "qualified default investment alternative," or QDIA, used when plan sponsors are directing the investment of account balances such as in automatic enrollment plans.
The act was formulated to remedy the under-funding of many defined benefit plans, address the future of tax- advantaged savings plans created by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), and grant employers the authority to offer automatic enrollment and salary deferral features to defined contribution plans.
The suite of services, called Schwab Retirement Smart Steps(TM), includes automatic enrollment, automatic savings increases, automatic investment selection and automatic mapping of new plans.
CHICAGO -- The Profit Sharing/401k Council of America (PSCA) said today that it commends President Obama for removing a provision from his final Budget that required all 401(k) plans to provide automatic enrollment.
The Budget appears to require that all employer-provided 401(k)-type plans offer automatic enrollment of all eligible employees.
New Survey Shows Greater Use of Automatic Enrollment and Higher Participation Rates
More than 300 defined contribution plans administered by Vanguard used automatic enrollment in 2007, triple the number in 2005.
Employers can jump-start employees' retirement savings through automatic enrollment in their company's 401(k) plan

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