Does Autoenrollment Affect Employer Contributions?
Low participation rates limit the effectiveness of 401(k) plans as a reliable source of retirement income. About one in five workers eligible to participate in their employer’s 401(k) plans do not enroll (Munnell, Golub-Sass, and Muldoon 2009). Firms can raise participation rates by automatically enrolling employees as soon as they become eligible. However, higher participation rates increase costs for employers that match employee contributions, and firms appear to reduce the rate at which they contribute to 401(k) plans when they adopt autoenrollment.
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Church pension plans. Employees covered by church pension plans are denied the basic protections provided to virtually all other private-sector workers who participate in pension plans. Read our fact sheets to learn more.