PLANSPONSOR - October/November 2018 - 45

Automatic Features
enrollment
Automatic
and
Default Deferral Rate
automatic
escalation
programs
encourage employees to take advantage of their DC plan, making
opting out more of an effort than enrolling. Almost 47% of plans
now have auto-enrollment, and nearly three in four of those default
the contributions into a target-date fund (TDF). Auto-escalation,
whereby participants' contributions are increased annually, is in
place for about 38% of plans, both on an opt-in and opt-out basis.
Plans that offer both types of automatic features enjoy very high
participation rates.
Plans Using Automatic Features
n Auto-Enrollment n Auto-Escalation
There is no doubt that adopting automatic plan features shifts the
burden of decisionmaking from participants to the plan fiduciaries
and others involved in plan administration. Once automatic
enrollment has been approved as a plan feature, one decision is
the percentage of salary that will automatically be deducted from
participants' paychecks to contribute to the DC plan. Six years
ago, only about 37% of plans would auto-enroll employees at a
rate exceeding 3% of salary. Now, nearly 48% of plans do so,
and over 35% of plans default at 5% or more.
Default Deferral Rate
l <2%
l 3%
l 4%
l 5%
l >6%
l Other
All
<$5mm
$5mm -
$50mm
Average Plan Participation Rates
89.3%
82.6%
68.5%
74.2%
42.4% 40.6% 41.7% 46.5% 47.5%
Auto-enrollment
and escalation
Auto-enrollment
only
Auto-escalation
only
No 'auto' plan
features
Trend in Plans Using a TDF for Default Investment
73.3%
60.6% 61.6% 65.8% 65.9%
5.4%
6.6%
2014
2015
2016
2017
2018
Average Participant Deferral Rate, by Default Rate
8.1%
>$50mm -
$200mm
>$200mm
Plans With >3% Default Deferral Rate
24.0%
1.4%
11.5%
11.1%
39.6%
12.4%
2014
2015
2016
2017
2018
<3%
3% - 5%
>5%
PLANSPONSOR.com October-November 2018 45
46.6%
38.3%
23.3%
16.4%
50.1%
34.9%
63.5%
57.8%
70.8%
73.2%

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PLANSPONSOR - October/November 2018

Table of Contents for the Digital Edition of PLANSPONSOR - October/November 2018

Looking Closer
2018 DC Survey: Plan Benchmarking
Operational Loan Failures
Looking Beyond Performance
Staying Ahead of Inflation
Private Market Investing
Income Disruptions
Easy Access
PLANSPONSOR - October/November 2018 - Easy Access
PLANSPONSOR - October/November 2018 - FC1
PLANSPONSOR - October/November 2018 - FC2
PLANSPONSOR - October/November 2018 - C2
PLANSPONSOR - October/November 2018 - 1
PLANSPONSOR - October/November 2018 - 2
PLANSPONSOR - October/November 2018 - 3
PLANSPONSOR - October/November 2018 - 4
PLANSPONSOR - October/November 2018 - 5
PLANSPONSOR - October/November 2018 - 6
PLANSPONSOR - October/November 2018 - 7
PLANSPONSOR - October/November 2018 - 8
PLANSPONSOR - October/November 2018 - 9
PLANSPONSOR - October/November 2018 - 10
PLANSPONSOR - October/November 2018 - 11
PLANSPONSOR - October/November 2018 - 12
PLANSPONSOR - October/November 2018 - 13
PLANSPONSOR - October/November 2018 - 14
PLANSPONSOR - October/November 2018 - 15
PLANSPONSOR - October/November 2018 - 16
PLANSPONSOR - October/November 2018 - 17
PLANSPONSOR - October/November 2018 - 18
PLANSPONSOR - October/November 2018 - 19
PLANSPONSOR - October/November 2018 - 20
PLANSPONSOR - October/November 2018 - 21
PLANSPONSOR - October/November 2018 - 22
PLANSPONSOR - October/November 2018 - 23
PLANSPONSOR - October/November 2018 - 24
PLANSPONSOR - October/November 2018 - 25
PLANSPONSOR - October/November 2018 - 26
PLANSPONSOR - October/November 2018 - 27
PLANSPONSOR - October/November 2018 - 28
PLANSPONSOR - October/November 2018 - 29
PLANSPONSOR - October/November 2018 - 30
PLANSPONSOR - October/November 2018 - 31
PLANSPONSOR - October/November 2018 - 32
PLANSPONSOR - October/November 2018 - 33
PLANSPONSOR - October/November 2018 - Looking Closer
PLANSPONSOR - October/November 2018 - 35
PLANSPONSOR - October/November 2018 - 36
PLANSPONSOR - October/November 2018 - 37
PLANSPONSOR - October/November 2018 - 38
PLANSPONSOR - October/November 2018 - 39
PLANSPONSOR - October/November 2018 - 2018 DC Survey: Plan Benchmarking
PLANSPONSOR - October/November 2018 - 41
PLANSPONSOR - October/November 2018 - 42
PLANSPONSOR - October/November 2018 - 43
PLANSPONSOR - October/November 2018 - 44
PLANSPONSOR - October/November 2018 - 45
PLANSPONSOR - October/November 2018 - 46
PLANSPONSOR - October/November 2018 - 47
PLANSPONSOR - October/November 2018 - 48
PLANSPONSOR - October/November 2018 - 49
PLANSPONSOR - October/November 2018 - 50
PLANSPONSOR - October/November 2018 - 51
PLANSPONSOR - October/November 2018 - 52
PLANSPONSOR - October/November 2018 - 53
PLANSPONSOR - October/November 2018 - Operational Loan Failures
PLANSPONSOR - October/November 2018 - 55
PLANSPONSOR - October/November 2018 - 56
PLANSPONSOR - October/November 2018 - 57
PLANSPONSOR - October/November 2018 - Looking Beyond Performance
PLANSPONSOR - October/November 2018 - 59
PLANSPONSOR - October/November 2018 - 60
PLANSPONSOR - October/November 2018 - 61
PLANSPONSOR - October/November 2018 - Staying Ahead of Inflation
PLANSPONSOR - October/November 2018 - 63
PLANSPONSOR - October/November 2018 - Private Market Investing
PLANSPONSOR - October/November 2018 - 65
PLANSPONSOR - October/November 2018 - Income Disruptions
PLANSPONSOR - October/November 2018 - 67
PLANSPONSOR - October/November 2018 - 68
PLANSPONSOR - October/November 2018 - 69
PLANSPONSOR - October/November 2018 - 70
PLANSPONSOR - October/November 2018 - 71
PLANSPONSOR - October/November 2018 - 72
PLANSPONSOR - October/November 2018 - C3
PLANSPONSOR - October/November 2018 - C4
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https://www.plansponsordigital.com/plansponsor/january_february_2024
https://www.plansponsordigital.com/plansponsor/november_december_2023
https://www.plansponsordigital.com/plansponsor/september_october_2023
https://www.plansponsordigital.com/plansponsor/july_august_2023
https://www.plansponsordigital.com/plansponsor/may_june_2023
https://www.plansponsordigital.com/plansponsor/march_april_2023
https://www.plansponsordigital.com/plansponsor/december_2022_february_2023
https://www.plansponsordigital.com/plansponsor/october_november_2022
https://www.plansponsordigital.com/plansponsor/august_september_2022
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https://www.plansponsordigital.com/plansponsor/february_march_2022
https://www.plansponsordigital.com/plansponsor/december_2021_january_2022
https://www.plansponsordigital.com/plansponsor/october_november_2021
https://www.plansponsordigital.com/plansponsor/august_september_2021
https://www.plansponsordigital.com/plansponsor/june_july_2021
https://www.plansponsordigital.com/plansponsor/april-may_2021
https://www.plansponsordigital.com/plansponsor/february-march_2021
https://www.plansponsordigital.com/plansponsor/december-january_2021
https://www.plansponsordigital.com/plansponsor/october-november_2020
https://www.plansponsordigital.com/plansponsor/august-september_2020
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https://www.plansponsordigital.com/plansponsor/april-may_2020
https://www.plansponsordigital.com/plansponsor/february-march_2020
https://www.plansponsordigital.com/plansponsor/december-january_2020
https://www.plansponsordigital.com/plansponsor/october-november_2019
https://www.plansponsordigital.com/plansponsor/august-september_2019
https://www.plansponsordigital.com/plansponsor/june-july_2019
https://www.plansponsordigital.com/plansponsor/april-may_2019
https://www.plansponsordigital.com/plansponsor/february-march_2019
https://www.plansponsordigital.com/plansponsor/december_2018-january_2019
https://www.plansponsordigital.com/plansponsor/october-november_2018
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https://www.plansponsordigital.com/plansponsor/june-july_2018
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https://www.plansponsordigital.com/plansponsor/february-march_2018
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