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Auto-Enrollment and QDIAs Succeed, But Participant Communications Don't Keep Up
Lincoln Financial Group and Retirement Made Simpler
Feb. 12, 2013
"Eighty-five percent of plan sponsors reported that automatic features are especially effective in helping participants who consider themselves less educated on retirement matters. [But] the more fully organizations have embraced automatic features, the more strongly those organizations believe participant communication has not evolved apace. Plan sponsors who have implemented a bundle of automatic plan features -- automatic enrollment, qualified investment default alternatives (QDIAs) and automatic escalation -- are 56 percent more likely to feel that communication strategies have not kept pace with the evolution in plan design."
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