FREEDOM ONE'S AUTO PILOT PROGRAM
Today is a new world.
The national savings rate is at its lowest level since the 1930s,
declining from 9.4% in 1970 to just 1% in 2004. We are faced with
the reality that millions of Baby Boomers are on the cusp of
retirement and standard retirement plans, such as social security and
pensions, will no longer be able to support younger generations.
With recent IRS initiatives, companies
finally have a solution to improve
our retirement realities. So how have employers, the retirement industry, public policy makers, and others joined together to help American workers plan for their future? The answer in two words: automatic
enrollment. How has Freedom One integrated this solution to
make it easy for plan sponsors? Two words: AUTO PILOT.
Through Auto Pilot, plans sponsors can create a retirement plan
that helps employees make important economic decisions that can improve retirement savings.
Adding automatic provisions to a retirement plan, such as automatic enrollment
and automatic escalation, helps
employees save more for retirement. Automatic
Provisions
Automatic Enrollment -
Enroll your employees in the retirement plan and allow them to “opt
out” if they do not wish to participate. This feature applies to previously waived employees (employees who do not contribute to the plan),
as well as newly eligible employees.
Automatic Escalation -
Increase the amount your employees contribute to the plan on an annual basis, up to a pre-determined amount.
Why Automatic Enrollment and Automatic Escalation?
By promoting participation among all
employees, we believe automatic enrollment and automatic escalation helps a plan sponsor
achieve important 401(k) plan objectives such as:
-
Higher overall enrollment rates,
which leads to increased savings for retirement
-
Improved non-discrimination testing results in larger contributions among highly
compensated individuals
-
Increased employee morale creates a stronger commitment to your company
How Auto Pilot Works
Auto Pilot is easy for you to
implement.
Once you have determined which provisions you’d like to implement, we will provide
the
IRS-required notice regarding
Auto Pilot for distribution to your employees.
This notice explains plan provisions, gives investment information, and provides instruction on how
employees can “opt out” of the plan if they wish.
To learn more about
Auto Pilot and how it can benefit your plan, please contact
Freedom One's Client Service Department at
248-620-8100. | 
