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Retirement Made Simpler News
August 31, 2010
Each issue of Retirement Made Simpler News delivers important news, research, updates and more to your inbox. Meet the Organizations
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Automatic 401(k) in the News
Automatic IRA Bills introduced in House and Senate
The Automatic IRA has been proposed as a way for the roughly half of U.S. workers that are not offered a 401(k) or any other type of employer-sponsored plan to save for retirement. Bills in the Senate and House are based on a proposal developed by the Retirement Security Project, an RMS partner. Eligible employees would be able to save for retirement through automatic payroll deposit IRAs.
Senate Bill Summary
House Bill Summary
AARP Applauds Introduction of Automatic IRA Bill
In a statement following U.S. Senator Bingaman’s introduction of the Automatic IRA Act of 2010, AARP Executive Vice President Nancy LeaMond noted: "This legislation would give approximately 42 million more workers an opportunity to build a nest egg."
Read the Release
New Automatic IRA Legislation Garners Support from Both Sides of Ideological Aisle
Major think tanks find common ground in the Senate and House bills to implement the automatic IRA.
New Legislation Helps Build Retirement Security - Brookings
The Automatic IRA: A Conservative Way to Build Retirement Security - Heritage
New Research
More Employers Adding 401(k) Plan Features to Drive Participation and Savings
Research from Charles Schwab, a 401(k) provider to approximately 1.5 million company retirement plan participants, shows that the growing number of employers are providing their employees with value-added 401(k) plan features such as automatic enrollment and advice that help drive positive plan participation and savings behaviors.
According to the survey:
- Thirty-eight percent of employers automatically enroll participants, up dramatically from just five percent in 2005. An even greater number of larger companies automatically enroll participants. Among companies with more than 2,500 participants, 53 percent use automatic enrollment.
- Thirty-seven percent of employers using automatic enrollment are also using automatic savings increases, up from 14 percent in 2006.
- Nearly three-quarters (74 percent) of employers make 401(k) advice available to plan participants, as compared to 42 percent in 2005.
- More than three-quarters (76 percent) of employers currently include target date funds in their fund line-ups, compared to 57 percent in 2005.
Read More
Featured Resources
Automatic 401(k) Resource Center
Automatic 401(k) Toolkit
Automatic 401(k) Directory
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