Today I’m going to be talking about another facet of Auto to the 5th: automatic re-enrollment.
What this means is that as an employer, you will automatically re-enroll your participants into the qualified default investment alternative, or the QDIA.
Not only does this provide a great opportunity for your participants, it also helps to protect you as a provider. Automatic re-enrollment helps your employees be more secure in their retirement.
However, they are able to opt out. If your participants don’t want their investments to change, they have a 30-day period to let you know.
Otherwise, after you have given them 30 days of notice, their investments are going to go toward the QDIA.
As an employer, this gives you coverage under the Pension Protection Act of 2006. You can feel secure in knowing that you are protected and that your participants are being well taken care of by their plan.
You can learn more about this all from the book I co-authored: “Tracking Retirement.”
If you have any other questions or would like more information, you can feel free to give me a call or send me an email. I look forward to hearing from you soon.