Mandate Automatic Enrollment
May 11, 2009
Current situation
The Pension Protection Act allowed employers to automatically enroll workers in 401(k) plans, increase the amount workers save, and allocate the savings to certain pre-approved investments.
Retirement challenge
“Auto-pilot” 401(k) plans work: 90% of auto-enrolled employees have stayed in their plans. But, since “auto-pilot” provisions are optional, many employers have not adopted them.
Bob Reynolds’ Retirement Reform Agenda
Mandate “auto-pilot” plans with automatic enrollment, savings escalation, and guidance to qualified default options for all employer-sponsored retirement savings plans.
This is one of the proposed retirement savings reforms proposed by Bob Reynolds, President and CEO of Putnam Investments. For the full list, read the blogs in the Workplace Savings 3.0 category and see the document embedded below.
