The Plan Sponsor Council of America\u2019s newest annual report shows that in 2015, 25.5% of small 401(k) plans offer automatic enrollment. In their survey, small plans are considered plans with less than 50 participants.<\/p>\n
While the typical default rate of automatic enrollment is 3%, 51.6% of automatic enrollment plans have a default rate greater than 3%.<\/p>\n
For smaller plans that don\u2019t have a safe harbor plan design and have potential plan testing issues, automatic enrollment is a no brainer since it helps boost the deferral rate for non-highly compensated employees and the rues concerning them give enough liability protection for plan sponsors to offer them.<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" The Plan Sponsor Council of America\u2019s newest annual report shows that in 2015, 25.5% of small 401(k) plans offer automatic enrollment. In their survey, small plans are considered plans with less than 50 participants. While the typical default rate of … Continue reading