401k Auto-Enrollment Takes Plan Participation to 100%
401k Auto-enrollment increases participation. In this case, it helped to boost the Orlando Regional Realtor Association 401k plan participation rate to 100%! This is a major accomplishment for any participant funded retirement plan. After a Plan Sponsor University (TPSU) Program at Rollins College in Orlando, Florida, Mr. Steff Chalk, Executive Director of TPSU interviewed Ms. Melinda Skinner, Plan Administrator of the Orlando Regional Realtor Association. After attending a TPSU program a couple of years ago, Ms. Skinner decided to implement auto-enrolment.
401k Auto-enrollment is a TPSU Program best practice strategy discussed during Session 5, Designing Your Ideal Retirement Plan. Ms. Skinner knows that 401k auto-enrollment works since eligible employee participation at her firm is at 100%.
The Orlando Regional Realtor Association plan’s participation is proof that 401k Auto Enrollment increases employee participation rates.
Full Transcript Here
Hi. This Steff Chalk, and I’m at Rollins College, where we just completed a TPSU program. I’m sitting here with Melinda. Melinda had some interesting insights on how she looks at the auto enroll and what they’re doing at their company. Melinda, is it okay if I ask you some questions, please?
Great. Could you tell us a little bit about yourself, and your company, and how you work with the 401(k) plan, please?
Yes. My name is Melinda Skinner, and I work for the Orlando Regional Realtor Association. We actually are a small trade association here in the Orlando area. We serve the realtor members that we have. We have about 15,000 members.
During the program, you had mentioned that you had a favorable experience as a result of something that you’ve been exposed to at a prior TPSU program. I was wondering if you could tell us a little bit about the match.
Yeah, so it’s so funny that you mentioned that. About two years ago, I did attend one of your programs. I went in completely against automatic enrollment. I wasn’t interested in it. Our program, the way it’s set up, we do not provide a company match until one year of employment. I was just under the mindset that the employees the first year didn’t really have to contribute until they earned their match.
What I learned was that I wasn’t really doing a benefit to the employees, or our plan, or our business. What I decided was to go ahead and try your suggestions, and I did automatic enrollment. We’ve been doing that for the past two years. We’ve actually had 100% participation, so no one has opted out.
Great. Well, 100%, that’s pretty hard to beat, right? Okay, well, thank you very much. As a result of being here today, what’s the next thing you’re going to take off your list that you used to not like that now you’re maybe going to think about?
Well, it’s so funny, because this year we really are looking into implementing a 360 degree communication between our payroll company and our retirement plan record-keeper. What I am going to do now because I don’t have to do such a manual process as I’ve had to do in previous years, I’m actually going to do an automatic increase every year for the employees.
Okay, that’s good. Also, we’re proponents of the auto increase at TPSU as well. That’s fantastic. Thanks again. It was great having you here, and hope you enjoy yourself.
Thank you for having me. Thank you.
That concludes this program from Rollins College with TPSU. Thanks for watching.
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