New Resource Helps Employers Implement Automatic 401(k)s

Monday, January 28, 2008

Anne Caldwell, AARP, Financial Industry Regulatory Authority, http://www.retirementmadesimpler.org

As an HR professional, what you can and cannot say to your fellow employees about how they should structure their retirement planning has been a huge challenge.

The recently launched Retirement Made Simpler (RMS) campaign provides employers tools, research, and tips to help them automate their 401(k) plans. The campaign, accessible at www.retirementmadesimpler.org, is a joint effort of AARP, the Financial Industry Regulatory Authority (FINRA), and the Retirement Security Project (RSP) aimed at helping Americans save for a secure financial future.

The number of companies that have adopted automatic 401(k)s has increased steadily in recent years because these programs work and employees like them, as demonstrated by recent studies. For example, a Retirement Made Simpler research study conducted by Harris InteractiveŽ showed that 98 percent of employees with automatic 401(k)s like them, 97 percent are glad their companies offer them, and 85 percent say that it has helped them save earlier than planned. Employers also will be happy to note that participation rates typically soar to between 85 and 95 percent when they implement an automatic 401(k) plan.

To find out more about automatic 401(k)s, including a sample employer toolkit, and to read about employers who have successfully automated their 401(k) plans, visit www.retirementmadesimpler.org.

Anne Caldwell, President
Outsourcing Solutions
Content expert behind JIAN's Employee Manual Builder -- Employee policies handbook software
www.azoutsource.com
602.228.9191

Return to Library of Business Information