X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
A larger percentage of employees max out on their company matching in 401(k) plans without auto-enrollment than do in plans with auto-enrollment. (Photo: iStock)

It’s been 10 years since we saw a rare convergence of the industry, regulations, and academics with the signing of the Pension Protection Act (PPA) in 2016. Among the gems included in this legislation is the encouragement of the use of auto-enrollment. This “nudge” concept, advocated in part by strong academic studies, shifts the default from opting-in to opting-out. This takes advantage of the native decision-making inertia all too often exhibited by humans — that is, not making a decision.

Christopher Carosa

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

Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.