The Plan Sponsor Council of America through their annual survey has indicated is that 3% is no longer the most common default deferral rate for automatically enrolled 401(k) plan participants.<\/p>\n
The new most common default deferral rate is now 6%. The most common default deferral rate is now 6% of pay (32.9%) rather than the 3% of pay that was the norm since 2006 (29% of plans) when automatic enrollment was added to the Internal Revenue Code that year.<\/p>\n
While some naysayers will still object to automatic enrollment, this.\u00a0 change comes as no surprise to me, as the liability protection given to plan sponsors through the use of a qualified default investment alternative has made automatic enrollment, a great asset for any plan that wants to add automatic enrollment.<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" The Plan Sponsor Council of America through their annual survey has indicated is that 3% is no longer the most common default deferral rate for automatically enrolled 401(k) plan participants. The new most common default deferral rate is now 6%. … Continue reading