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Auto Enrolling New Employees Can Be a Challenge

 

Laurie Meyer, a long-time SHRM member discusses auto enrollment.

Auto enrollment can cause a bit of fear among plan participants who report that they are mostly fearful of the unknown. Laurie states that at 3%  (her basic, default auto-enroll deferral amount for new employees) participants can get a sense of a “starting point” for a deferral amount.

After 20 years Laurie reports that the most common question for new employees is “how much should I defer” or “what is the usual amount to defer?”. Not being able to advise employees on deferral amounts, Laurie says the auto-enroll let’s participants make their own decision from the 3% “benchmark”.

 

 

Fred Barstein

Fred Barstein

Founder & Editor-in-Chief at 401kTV | TRAU | TPSU
Fred Barstein is the Founder & Editor-in-Chief of 401kTV. Fred is also the Founder and CEO of The Retirement Advisor University (TRAU), a collaboration with UCLA Anderson School of Management Executive Education and The Plan Sponsor University (TPSU).Mr. Barstein was also Founder and Editor-in-Chief of NAPA Net.
Fred Barstein
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