New York Life Retirement Plan Services, a division of New York Life Investment Management, has reported an increase in the client adoption of auto-enrollment and managed savings in 2007, as a result of the Pension Protection Act.
Analysis of 222 of New York Life’s mid-sized, defined contribution clients revealed that plans with an auto-enrollment feature increased from 18% to 32% between January 1, 2007 and the end of September 2007. Also of note, those same clients deploying managed savings saw an increase from 14% to 25% in the same time frame.
Don Salama, senior managing director and head of New York Life Retirement Plan Services, said: When the PPA was passed a year ago, we predicted that it would profoundly change the retirement business, and now we are seeing that statistical evidence in our defined contribution client base. We’ve also found that when a plan sponsor implements auto-enrollment and managed savings it’s just as important, if not more so, for existing employees to benefit as it is for new hires.