Customers of All Sizes Smart Choice with Save Smart Feature
Monday November 10, 9:43 am ET
ADP Launches Offering of Auto-Pilot Savings Feature for Plan Participants
biz.yahoo.com Offers
ROSELAND, N.J.--(BUSINESS WIRE)--Nov. 10, 2003--ADP®, Employer Services (ES) division, a leading provider of integrated outsourced payroll and human resources services, today announced plans to make its automatic retirement savings feature Save Smart(SM) available to 401(k) enrollees and plan participants in companies of all sizes effective January 1, 2004. With the Save Smart feature, employees can elect to have their tax-deferred 401(k) payroll deductions automatically increase in the future, typically, around the time of their next pay increase or on a specified date each year. This powerful automatic 401(k) savings tool is intended to help employees save more for their retirement on a pre-programmed basis.
While variations of automatic savings features have been tried and tested by larger companies that sponsor 401(k) plans, ADP Retirement Services will now be making it available to plan participants of all of its small and mid-size clients. If elected, employees may choose to increase their contribution levels by 1, 2, or 3 percentage points each year, up to the maximum they want to save (subject to their plan limits), as well as select the month in which they wish the increase to occur.
"We've found that when employees sign up for a 401(k) plan, they often fail to go back and increase their contribution levels even when they are financially able and willing to do so," said Kendall Kay, Vice President, Marketing, Strategic Planning and Business Development for ADP Retirement Services. "Save Smart puts employees in control by allowing them to determine when and by how much they will increase their contribution levels. This increases their comfort level as employees can allocate a portion of their future pay raises toward their retirement savings without noticing much of a difference in their take home pay."
The Save Smart feature helps employers provide yet another retirement planning tool for employees to save more for the future in a convenient and painless way. Save Smart can be combined with existing ADP features, such as ADP's automatic Account Rebalancing, to help employees manage both their payroll deductions and retirement accounts. An added benefit of the Save Smart feature is that by making it available to participants at all levels, it may help employer plans to pass nondiscrimination tests. ADP will help employers to encourage Save Smart use by including information about it in enrollment materials and participant statements, and on sponsor and participant Web sites.
"Most working people would agree that saving for their retirement is one of their top financial priorities," said Kay. "Employees look to their employers for convenient tools and services to help them achieve this. We think the Save Smart concept should be universally available to all employees in companies of all sizes. It is our goal to help employers to move the needle in the right direction - and enable their employees to save more for retirement." |
