Auto-Enrollment Sometimes Needs a Boost
Auto-Enrollment is an engaging strategy used by 401k plan sponsors. There are many different reasons that plan sponsors institute Auto Enrollment within a 401k plan and in the majority of the cases the Auto Enrollment feature is well accepted – but in some instances, the plan sponsor finds they need to look a little deeper into why employees opt-out of the 401k Plan. At the conclusion of a Plan Sponsor University (TPSU), Fiduciary Education Program held at the location of the University of California Irvine, in Irvine, California, TPSU Founder and CEO Fred Barstein spoke with Megan Kelly, Director of Human Resources where the employee base ranges between 75 and 100 employees. Ms. Kelly has found that even with the Auto Enrollment feature, her firm has several younger employees who are choosing to opt-out of the 401k plan. Not wanting to give up on this important employee benefit, Ms. Kelly will be looking at improving communications around the benefit. Another strategy she is considering is the Auto Re-enrollment feature.