More and more companies are now offering automatic enrollment, according to a study by Hewitt Associates, Inc. Forty-four percent of the companies surveyed offer the feature, compared with 36% in 2007. The study also found that for companies that currently do not offer automatic enrollment, 30% said that they would very likely to add it this year, while 27% are likely to do so.

Automatic enrollment aims to increase plan participation by automatically enrolling employees once they become eligible, unless the employee declines participation. The feature has become more popular since the Pension Protection Act of 2006, which removed previous obstacles that were in place. It can be especially beneficial to small businesses, where employee participation often lags behind those of larger companies.

NADART is pleased to be able to offer automatic enrollment, and other features our plan sponsors. Small businesses, as well as larger companies, can benefit from the features we offer and our low fees. If you would like to learn more about how NADART can help your business with the right retirement plan, please contact (800) 462-3278, ext. 7161 or e-mail nadart401k@nada.org.