Completion of Enrollment form

[CLE401kGuy]

Client wants to have participants complete enrollment forms at hire to attempt to increase participation - eligibility is age 20, 90 days, quarterly entry (calendar year plan) - the payroll system has the rules for eligibility entered so elections can be entered at the time of completion and automatically go into effect when eligible, what are peoples' opinions on having enrollment forms completed so far in advance of entry date? Definitely seeing issues with those folks under 20 (and this employer has a fair amount of them) and issues with the SPD and SMM's - My thought is just to relax plan entry to date of hire, no age - the main goal is to get people started participating early and catch them when they are completing the rest of their enrollment forms... (or at least eliminate the age 20 rule)

Any thoughts would be appreciated....

[GMK]

As best as I can tell, the easiest way to increase participation is to have automatic enrollment. Instead of making employees fill out a form to participate, have them fill out a form to opt out.

Be sure they understand that they will be enrolled at the default deferral percentage unless they file an opt-out form.

And a decent match will help ensure their continued participation.

[00hskrgrl]

i've seen many companies that give out the deferral election forms with the rest of the benefits orientation packet at hire, so that employees can fill the 401(k) elections out with the rest of their benefits elections. including a checklist of what was distributed and covered in benefits orientation (which the employee signs at the end of the orientation) also prevents any self-corrections of missed eligibility, because the employer has documentation that the option to contribute was provided to the employee. Usually these are companies that don't have the issue with under age 20.

I see nothing wrong with passing out deferral election forms 90 days in advance (it's still the employee's option when/if to return the form). giving a form to someone who's 18 and not reminding them of their eligiblity closer to age 20 gives me a case of the "icks", but if the impetus is truly to increase participation, then this employer is likely reminding the employees as they near their 20th birthday (maybe even including another form in their birthday card?).