By Jerry Geisel, Crain News Service
CHICAGO (Nov. 25, 2014) — More employers are adding automatic enrollment features to their 401(k) and other defined contribution plans, according to a new survey.
In 2014, 68 percent of employers surveyed by Towers Watson & Co. offered an automatic enrollment feature, up from 65 percent in 2012 and 57 percent in 2011.
Employers, though, typically limit automatic enrollment programs to new employees. For example, of the 68 percent of employers with automatic enrollment programs, 47 percent offer it to newly hired employees and 21 percent extend it to all employees.
Under automatic enrollment, employees who don't respond to participation notices are enrolled automatically in a plan unless they notify their employers by a set date that they want to opt out.