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HR: Leading People, Leading Organizations © 2006 SHRM SHRM Weekly Online Survey: October 3, 2006 Defined Contribution Retirement Savings Plan - Automatic.

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Presentation on theme: "HR: Leading People, Leading Organizations © 2006 SHRM SHRM Weekly Online Survey: October 3, 2006 Defined Contribution Retirement Savings Plan - Automatic."— Presentation transcript:

1 HR: Leading People, Leading Organizations © 2006 SHRM SHRM Weekly Online Survey: October 3, 2006 Defined Contribution Retirement Savings Plan - Automatic Enrollment Sample comprised of 376 randomly selected HR professionals. Analyzing 376 responses of s sent, s were received (response rate = 15%). Survey fielded October 3 – October 9, 2006; presentation generated on October 13, Margin of error is +/- 5%.

2 HR: Leading People, Leading Organizations © 2006 SHRM SHRM Weekly Online Survey: October 3, 2006 Does your organization automatically enroll its employees into your organizations defined contribution retirement savings plan (i.e., 401(k)), meaning that employees are placed into the plan unless they opt out? NOTE: Excludes respondents who answered Not sure (1%) & N/A, my organization does not offer defined contribution retirement savings plan (7%). n = 347

3 HR: Leading People, Leading Organizations © 2006 SHRM SHRM Weekly Online Survey: October 3, 2006 Does your organization automatically enroll its employees into your organizations defined contribution retirement savings plan (i.e., 401(k)), meaning that employees are placed into the plan unless they opt out? ChoiceCountPercentage Answered No, employees are not automatically enrolled into our organizations defined contribution retirement savings plan 24972% Yes, employees are automatically enrolled into our organizations defined contribution retirement savings plan 6719% No, but we plan to implement Automatic Enrollment now that the Pension Protection Act has passed 319% NOTE: Excludes respondents who answered Not sure (1%) & N/A, my organization does not offer defined contribution retirement savings plan (7%).

4 HR: Leading People, Leading Organizations © 2006 SHRM SHRM Weekly Online Survey: October 3, 2006 When an employee is automatically enrolled into the plan, what is the default percentage of salary that is deferred? NOTE: Percentage does not total 100% due to rounding. The number of respondents (indicated by n in figures) varies from figure to figure because some respondents did not answer all of the questions. n = 65

5 HR: Leading People, Leading Organizations © 2006 SHRM SHRM Weekly Online Survey: October 3, 2006 When an employee is automatically enrolled into the plan, what is the default percentage of salary that is deferred? ChoiceCountPercentage Answered Less than 2%1421% 2 to 4%3654% 5 to 7%710% 8% or more58% Other58% NOTE: Percentage does not total 100% due to rounding.

6 HR: Leading People, Leading Organizations © 2006 SHRM SHRM Weekly Online Survey: October 3, 2006 When an employee is automatically enrolled into the plan, what is the default percentage of salary that is deferred? None is deferred, but the org. makes a contribution based on age and base salary Only the company's contribution is automatically invested. The employees may not ever have any compensation deferred unless they proactively sign up to do so. We enroll them by giving them a basic 4% from the employer. We do not force them to contribute. If they do contribute, we then provide a match to their contribution above the basic 4%. We fully pay our employees portion

7 HR: Leading People, Leading Organizations © 2006 SHRM SHRM Weekly Online Survey: October 3, 2006 Of the employees automatically enrolled in your defined contribution retirement savings plan, approximately what percentage have opted out or chosen not to participate? n = 65 NOTE: Percentage does not total 100% due to rounding.

8 HR: Leading People, Leading Organizations © 2006 SHRM SHRM Weekly Online Survey: October 3, 2006 Of the employees automatically enrolled in your defined contribution retirement savings plan, approximately what percentage have opted out or chosen not to participate? ChoiceCountPercentage Answered Less than 1%3249% 1 to 2%1422% 3 to 4%58% 5% or more711% Too soon to measure, recently implemented auto enrollment 711% NOTE: Percentage does not total 100% due to rounding.

9 HR: Leading People, Leading Organizations © 2006 SHRM SHRM Weekly Online Survey: October 3, 2006 Does your organizations defined contribution retirement savings plan include a feature that automatically increases employees deferral rates (i.e., participant contribution rates are automatically increased each year)? n = 273

10 HR: Leading People, Leading Organizations © 2006 SHRM SHRM Weekly Online Survey: October 3, 2006 Does your organizations defined contribution retirement savings plan include a feature that automatically increases employees deferral rates (i.e., participant contribution rates are automatically increased each year)? ChoiceCountPercentage Answered Yes, we started implementing this within the last year 93% Yes, we started implementing this over a year ago 105% No, and we have no plan to do so20577% No, but we are considering implementing this 3513% Other52%

11 HR: Leading People, Leading Organizations © 2006 SHRM SHRM Weekly Online Survey: October 3, 2006 Does your organizations defined contribution retirement savings plan include a feature that automatically increases employees deferral rates (i.e., participant contribution rates are automatically increased each year)? Not sure It is a state defined plan and the state sets the percentage each year NA

12 HR: Leading People, Leading Organizations © 2006 SHRM SHRM Weekly Online Survey: October 3, 2006 How many people are employed, full and part time total at your location? Organization Staff Size at location (n = 343) Small organization (1-99 employees)34% Medium organization ( employees)42% Large organization (500 or more employees)24%

13 HR: Leading People, Leading Organizations © 2006 SHRM SHRM Weekly Online Survey: October 3, 2006 How many employees are employed, full and part time total at your organization in the U.S.? Organization Staff Size in the U.S. (n = 337) Small organization (1-99 employees)21% Medium organization ( employees)31% Large organization (500 or more employees)48%


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