SMarT (Save More Tomorrow) Plan

[Guest BBeezley]

Two people originated the SMarT (Save More Tomorrow) concept a couple of years ago. I belive one of them was Schlomo Bernarzi (sp?). The gist was that employees enter into an agreement with their plan sponsor whereby they elect to automatically increase their 401(k) salary deferral by a pre-determined amount with each future raise they receive.

Has anyone implemented this program? What were the results?

[Kirk Maldonado]

Your posting has inspired the creative side of me. Maybe we should work on coming up with other acronyms to encourage employees contributing to Section 401(k) plans. My contribution (pun intended) to his cause is DOPE, which stands for: DOn't Procrastinate Enrolling.

Anybody else have any other suggestions?

[Jon Chambers]

Years ago, the consulting firm I worked for developed creative acronyms. Then, SMART stood for Save Money And Reduce Taxes (a typical 401(k)). My favorite was developed for Marineworld--SAFARI--Savings Accumulate For Additional Retirement Income.

I think I saw an article in IOMA on the Benartzi concept, but I don't have any data or direct client experience.