Search
 

How does auto-enrollment affect employer matches?

Two different studies, two different conclusions

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

In a December 2009 report, the Urban Institute tried to determine how automatic enrollment would affect employer contributions to 401(k)s. They found that companies with automatic enrollment have an average match rate that is 7 percentage points lower than companies without automatic enrollment. The authors suggest a negative relationship between auto-enrollment and match rates.

Data from the Employee Benefits Research Institute seems to contradict that, however. An advance summary from EBRI states employers who adopt automatic enrollment generally increased the employer match, and in some cases significantly.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

 

Recommended Stories

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.