As Americans’ retirement savings rates continue to be lackluster and as companies become increasingly focused on their employees’ financial wellness, automatic enrollment and escalation features may be useful tools in managing your workforce and getting employees prepared for their financial futures. In addition to helping put employees on track for a successful retirement, implementing these features can have powerful benefits for employers, as well, by streamlining the enrollment process and serving as a tool to attract and retain talented workers.
Before adopting automatic enrollment or escalation, plan sponsors should work closely with their internal teams, as well as with their third-party service providers, to ensure that the proper controls and procedures will be put in place.
To better understand the benefits and administrative requirements of automatic enrollment and escalation and to assess how these features could be adopted in your plan, contact a member of Baldwin’s Retirement Plan Resources team at 502-584-4001.
Posted by John Winslow, CPA