Employer Bulletin: Your Plan Administration Resource

Research: New Study Examining Public Employee Attitudes Toward Retirement and Auto-Enrollment

The Center for State and Local Government Excellence (SLGE) and ICMA-RC recently announced results from a new survey, Nudging Deferral Rates Within Public Sector Supplemental Retirement Plans.

Survey findings include:

  • Nearly half of state and local employees approve of auto-enrollment in defined contribution plans, known as Supplemental Retirement Plans (SRPs), and 77% would choose to stay in a plan if auto-enrolled. Few states currently offer auto-enrollment in SRPs, a retirement plan feature that is widely available in the private sector.
  • Among those who would stay in the plan, higher default deferral rates result in respondents settling on a higher contribution rate.
  • Nearly half (47%) of respondents approve of auto-enrollment in an SRP, and 44% approve of employers setting an employee’s default rate. Strong approval of auto-enrollment declines from 24% to 12% when the default is set at 7% rather than 1%.

SLGE and Greenwald & Associates conducted the survey in conjunction with ICMA-RC.

The survey assesses public employee perceptions of auto-enrollment into SRPs and the impact of varying default deferral rates on an employee’s likelihood to stay in the plan. It also examines the attitudes and behaviors of public sector employees regarding retirement savings, their progress toward financial security, and issues driving their plan participation.

SLGE and ICMA-RC will host a complimentary webinar on Tuesday, May 7, 2019, at 2:00 p.m. Eastern time to review the findings. You can register here.

See the announcement with additional details about the research.

SLGE gratefully acknowledges ICMA-RC for their support of the research. Founded in 2006 with financial support from ICMA-RC, SLGE has published over 80 research reports on such topics as pension funding, health benefits, and compensation and workforce trends in state and local governments. Learn more about SLGE at www.slge.org or visit them on Twitter: @4GovtExcellence.