US - Companies have been given the power to automatically enrol employees into 401(k) and defined contribution (DC) pension schemes under the terms of a ruling by secretary of labor, Elaine Chao.
The decision, part of the implementation of the Pensions Protection Act (PPA), has seen the creation of qualified default investment alternatives (QDIAs), designed to encourage greater employee saving for retirement in long term investment vehicles.
Chao said in a statement: “This is a key component of the PPA and will help many more workers and their families build a nest egg for a secure and comfortable retirement.”
It is estimated the establishment of mandatory QDIAs woud increase retirement savings in DC schemes by up to US$134bn by 2034.
The regulation covers plan fiduciaries who invest the assets of workers not currently enrolled in specific savings schemes.
Ex-BHS owner Dominic Chappell has been ordered to pay a total of £87,000 in fines and court costs after he was found guilty of failing to provide The Pensions Regulator (TPR) with information.
The Department for Work and Pensions (DWP) has said it while believes in the benefits of consolidating defined benefit (DB) schemes, there are significant issues to overcome.
There is just one week left to register to enter the Workplace Savings and Benefits Awards 2018.
Nearly a third (32%) of employers believe new technologies, such as augmented and virtual reality, will play a part in benefits communications, latest research from Aon Employee Benefits reveals.