Automatic enrollment
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Learn more about automatic enrollment in your company’s retirement plan

Automatic Enrollment

Because the number of Americans covered by traditional pension plans has been dwindling for a while, the Pension Protection Act of 2006 allowed for companies to automatically enroll employees in defined-contributions plans such as 401(k)s and 403(b)s. There are different types of automatic enrollment in 401(k)s and 403(b)s, and rules that govern each type. There are also several benefits to you as an employee. Here’s a rundown:

Types of automatic enrollment1

Automatic Contribution Arrangement (ACA)

Eligible automatic contribution arrangement (EACA)

Qualified automatic contribution arrangement (QACA)

Default investments if employee does not make an election1

Benefits of automatic enrollment

You are saving for retirement

It’s easy, convenient and ideal for today’s mobile workforce.

You are in control

You can opt out

Although companies are encouraged set up an automatic enrollment arrangement, they’re not required to do so. Nor do you have to participate. If the plan's automatic enrollment arrangement is an EACA, you may have 90 days to elect to have your automatic contributions refunded to you.

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