One of the most common regrets employees have near retirement is not saving much earlier in life.
You, as an employer, can help new employees avoid these regrets by automatically enrolling them in a URS Savings Plan.
Studies show about 40 percent of employees don't participate in their employer’s retirement savings plans. However, automatic enrollment increases participation to about 88%*.
With automatic enrollment, new employees automatically participate in URS Savings Plans at a percentage the employer sets. The employee can proactively opt-out at any time.
Start an automatic enrollment program with your agency today with five easy steps:
1) Have a disclosure form that is signed by each of the new employees on or prior to their first day of employment. (For sample disclosure form, contact URS.)
2) Implement an internal policy allowing the auto-enrollment to take place. (For sample policy, contact URS.)
3) Choose an autoenrollment percentage and date when new employees will begin to be auto-enrolled. Consider the impact on your agency budget if you offer an employer-matching program.
4) Submit an updated service agreement to URS.
5) Ensure that payroll is contributing the autoenrolled percentage into the newly hired employee’s retirement savings plan (e.g. 401(k)), beginning with the first pay period, unless the employee opts out.
If you have questions, talk to your URS representative or call us at 800-753-7808.
*How America Saves 2016. Vanguard 2015 defined contribution plan data. The data shows that employees subjected to an automatic enrollment in a retirement plan have an overall participation rate of 88%, compared to 58% participation for those employees hired under plans with voluntary enrollment. Shlomo Benartzi, in his book Save More Tomorrow, shows similar participation. Benartzi indicates that 60% of employees participate in voluntary deferrals compared with 95% participation in automatic enrollment.
» Increases employee participation by simplifying the savings and investment process.
» Employees become more financially prepared for retirement.
» Helps employees take advantage of the total compensation package offered by your agency.
» Offers tax benefits on savings.
» Is optional, so employees can opt out at any time.
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