Currently, about one-third of eligible employees don’t participate in the 401(k) plan their employer offers, according to the DOL. One proven solution, of course, is automatic enrollment. But while auto enrollment has become widespread in the last few years, there are still plan sponsors out there who are reluctant to add the feature to an existing plan.
If you’re an advisor in need of a “persuader” to help get a client off the fence on auto-enrollment, assistance is available from the DOL — in the form of a downloadable booklet for employers touting its benefits and advantages. It even notes the protection from fiduciary liability that comes with the right default investment. Could be just the support you need to change someone’s mind.
