Nearly half of large companies, with more than 1,000 employees, automatically enroll employees in their retirement plans, and an additional 36 percent are considering implementing this feature, according to Diversified's Report on Retirement Plans-2011.
The report found that 57 percent of companies with 10,000 employees or more offered an automatic enrollment feature, and one-third of plan sponsors who were interviewed said they also have automatic deferral escalation in place. Another third of respondents said they would like to implement such a feature. Automatic account rebalancing is expected to grow at nearly the same rate as automatic escalation, 36 percent.
To grow participation rates, many sponsors, 58 percent of those surveyed, said they periodically re-enroll employees who originally opted out of their retirement plan.
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