Shifting into automatic: The benefits of automatic enrollment and escalation

April 2010
Employee Benefit News;Apr2010, Vol. 24 Issue 4, p35
The article explores the benefits of automatic tax-deferred retirement program enrollment and escalation in the U.S. The financial failures of retirees are attributed to ignorance and decision-making. Under the automatic enrollment, employees are placed in a tax-deferred plan with default contribution rate and asset allocation. Employee interpretation of the default contribution rate is cited as one of the disadvantages of automatic enrollment.


Related Articles

  • DC conference promises to offer food for thought. Jacobius, Arleen // Pensions & Investments;9/16/2002, Vol. 30 Issue 19, p6 

    Focuses on the issues on asset allocation during the Defined Contribution/401 (k) Reform Conference in Laguna Niguel, California. Issues on down markets and corporate scandals; Topics for discussion; Activities to enhance audience participation.

  • Co-ordinated approach. Jones, Ceri // Employee Benefits;May2010, Special section p6 

    The article discusses good governance of contract-based defined contribution (DC) pension scheme in Great Britain. It states that it clarifies practices under broad headings including scheme initiation, scheme design, monitoring and member communications. It notes that the scheme is effective in...

  • Managers ready for DC explosion across Europe. Hua, Thao // Pensions & Investments;2/20/2012, Vol. 40 Issue 4, p3 

    The article reports that defined contribution (DC) sector of Great Britain is expecting to rise in the defined benefit sector in next seven years. It states that DC sector is emerging for establishing and growing the capabilities which will form a hub for the rest of Europe. It mentions that...

  • New program offers `near advice'. Jacobius, Arleen // Pensions & Investments;3/6/2000, Vol. 28 Issue 5, p53 

    Reports the inauguration of One-on-One, a retirement education program in the United States. Creation of the program by General Electric Asset Management Services; Suggestions on asset allocation for defined contribution plan participants; Desire to help employees make better decisions as the...

  • By the Numbers.  // Employee Benefit News;Feb2001, Vol. 15 Issue 2, p73 

    Presents a tabular representation on the growth of defined benefit plan assets as well as asset allocation in the United States from 1998 to 1999. Defined Benefit (DB) Pension Plan Assets; Asset Allocation of DB Pension Plans; Asset Allocation of Defined Contribution Plans.

  • FTSE pension schemes not diversifying. Paterson, Jennifer // Employee Benefits;10/24/2013, p5 

    The article focuses on the research related to the Financial Times Stock Exchange (FTSE) pension schemes in Great Britain. It mentions that most of the FTSE companies have not made any changes to the asset allocation related to the defined contribution (DC) pension schemes. It states that most...

  • New Plan Design Trends Improved Participant Allocations. Moore, Rebecca // Plan Advisor News;2015, p42 

    The article focuses on an analysis from human resource consulting Towers Watson which examined the salient patterns of workers' asset allocations in retirement accounts and found a decline in extreme equity investing in defined contribution (DC) retirement plans from 2004 to 2013.

  • FleetBoston Adds Advice To 401(k) Service Lineup. Ackermann, Matt // American Banker;11/22/2000, Vol. 165 Issue 225, p9 

    Reports that FleetBoston Financial Corp. has added investment and asset allocation advice to its defined-contribution clients. Online delivery of the service through Financial Engines Inc.

  • Misguided search for revenue.  // Pensions & Investments;3/17/2014, Vol. 42 Issue 6, p8 

    The article discusses pension reforms proposed by U.S. President Barack Obama and Representative Dave Camp. Obama wants to restrict to $3.4 million retirement assets that can be accumulated in a tax-advantaged fashion. Among Camp's recommendations is a 10% surtax on contributions to...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics