The number of 401k and similar defined contribution plans with an automatic enrollment featurenearly doubled over the past decade, according to the Plan Sponsor Council of America’s (PSCA) 60th Annual Survey of Profit Sharing and 401k Plans.
PSCA, which announced last November that it joined the American Retirement Association, found that “59.7 percent of plans have an automatic enrollment feature in 2016 compared to 35.6 percent in 2007.”
“The survey found that automatic enrollment is most common in large plans—70 percent of plans with 5,000 or more participants have automatic enrollment versus 34 percent of plans with less than 50 participants,” wrote PSCA’s Hattie Greenan recently. “More than half of plans with automatic enrollment are set up for new hires only. The most common reason companies do not use automatic enrollment is because they’re satisfied with participation rates.”