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Serving Employees, at a Price
When employees are automatically enrolled in 401(k) plans the company tab can soar.
Russ Banham, CFO Magazine
July 15, 2008
- Cost of Auto Enrollment
Your readers might like to know that adding an auto-enrollment feature does not need to cost any more money. Also it is important as a CFO to have the liability in mind for all retirement benefits, thus a matching contribution liability should be looked at as if 100% of your employees participated to the maximum match. But many like to look at the liability as what they contributed the year before. Setting the budget to assume everyone will participate might be a valuable exercise then auto enrollment will be closer to expected.
Posted by Dorann Cafaro | Jul 25, 2008 4:16 PM ET
