Retirement Made Simpler: Helping you automate your 401(k) step-by-step
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  • NBCUniversal—Profile of a Successful Automatic Plan
    NBCUniversal started its retirement savings plan from scratch in early 2011. It has grown to $340 million—and has a 96.6 percent employee participation rate, in large part due to automatic features.
    • New employees are automatically enrolled into the target-date fund series at a 3.5 percent default rate. The auto enrollment takes place 30 days after hiring.
    • The deferral rate automatically escalates one percentage point a year to a maximum of 6.5 percent.
    • NBCUniversal's annual 401(k) plan contribution for a new employee is between 5.5 percent and 8.5 percent of pay.
    Read the Pensions & Investments article (registration may be required)
  • Auto 3.0—Time for a New 401(k) Model?
    Mark Iwry, senior advisor to the Secretary of the Treasury for retirement policy, acknowledges that automatic 401(k) features have gone a long way to improve retirement saving opportunities for American workers. He dubbed the widespread use of automatic enrollment of new employees and default investment options such as target-date or balanced funds or managed accounts "401(k) 2.0."
    • But why stop there, Iwry asks. Employers could move to a 3.0 model that's more robust:
      • Rather than settling for the standard 3 percent default rate for the initial salary deferral of new employees who are automatically enrolled in their company 401(k) plan, start at a higher level, perhaps 5 or 6 percent.
      • Instead of limiting auto enrollment to new employees, expand it to existing employees who are not participating in the retirement plan.
    • Iwry suggested additional best practices including more effective employer matching contributions (including matching formulas that offer lower-wage workers a higher rate of match), shorter eligibility waiting periods, broader coverage of part-time workers and expanded acceptance of rollover contributions.
    Read the Investment News article
  • How to Tell if Your 401(k) Plan Maximizes Benefits to Employees
    Not all retirement plans are created equal. As a Fox Business article notes, automatic features are some of the most valuable to employees:
    • Even the most generous employer match and the best investment options won't help you hit your savings goal unless you start contributing to your plan.
    • PlanSponsor.com reports that 91 percent of plans offer automatic enrollment to new employees, while less than 30 percent offer it to existing workers who were not previously enrolled (automatically enrolling ALL employees is considered a best practice).
    Read the Fox Business Article
  • Hiring Workers?
    The Department of Labor has a helpful resource if you are. The brochure New Employee Savings Tips—Time Is On Your Side drives home the importance of saving early.
    Download the brochure
  • Smart Automatic Retirement Plan Investing
    This RMS publication will help employees make the most of their employer’s automatic retirement plan. The brochure provides valuable educational information including:
    • Automatic plan basics
    • Understanding investment choices
    • Smart saving and investing tips
    Read and link employees to Smart Automatic Retirement Plan Investing
  • Fiduciary Rules Related to Automatic
    401(k)s

    Retirement Made Simpler legal advisor Robert J. Toth, provides valuable information including:
    • Application of Fiduciary Rules to Automatic Contribution Arrangements
    • Personal Liability
    • The Value of Process and Documentation
    • Choosing a Default Investment
    Read the article
  • The Business Case for Automatic 401(k)s Automatic Enrollment
    Is automatic enrollment worth the cost of additional employer matching contributions plus any cost of implementation or ongoing administration?
    Read More
  • New Automatic 403(b) Toolkit
    Retirement Made Simpler has produced a robust toolkit to provide employers with a 403(b) retirement plan step-by-step guidance to implementing automatic features.
    Automatic 403(b) Toolkit
    View Press Release
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