What is auto enrollment and how can it help a business owner? This white paper explains the benefits and barriers to implementing automatic enrollment. Employers benefit in two ways: a) increasing the allowable contribution levels by an employer; and b) lowering the administrative cost-per-employee. Download this free white paper now for details, including:
- How automatic enrollment boosts participation levels from the average of 72% up to 92%
- For new employees, auto enrollment reduces paperwork and administrative expenses
- The federal compliance requirements of the Pension Protection Act of 2006
- Key definitions of the Act, such as "fiduciary," and acceptable "financial institutions"
- Why some employers are reluctant to face employee response to auto enrollment
- Amending the 401(k) plan's Adoption Agreement to allow changing enrollment procedures
- How modified vesting periods can be used a retention tool in high-turnover industries
- The requirements for auto increases in deferral rates for "safe harbor" plans
- Federal law provisions for notification of employees about changes to the plan
- The tools needed for accurate reporting to avoid tax penalties
- What to look for in partners for the record keeping and plan administration duties
- Acceptable options for an employee's Qualified Default Investment Alternative (QDIA)
- The three investment approaches for auto enrollment offered by Paychex
- The future outlook of Congressional debate over retirement savings contributions credits
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