NADA recently announced that, beginning January 1, 2006, NADART will give its pension clients the option of automatically enrolling their employees in the NADART 401(k) plan. Under this feature, employees who have not affirmatively elected either to contribute or not contribute to the plan will be signed up automatically.
The automatic enrollment option is being added as Congress considers legislation that would encourage businesses to automatically enroll employees who have not signed up for their companyês retirement plans.
We want to give our participants every opportunity to succeed in their retirement planning, said Philip Holland, NADART’s chief operating officer. Signing up employees when they become eligible makes things easier for them. They don’t have to think about it and it provides a significant benefit in the long-term.
Participants will still be able to opt out of contributing to the plan and to change the level of contributions from the default amount. Employees will receive notice of the automatic enrollment feature prior to their eligibility date, and each year all participants contributing under the automatic enrollment provision will receive notice of their rights under the plan. For more information, please call (800)248-6232, Ext. 7254, or e-mail nadart401k@nada.org.
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