Retirement Made Simpler Releases Automatic 403(b) Toolkit to Increase Ease of Implementation, Help Employees Save

WASHINGTON, Nov. 3, 2010 /PRNewswire-USNewswire/ -- Retirement Made Simpler (RMS) today released a robust online toolkit to provide employers with a 403(b) retirement plan of step-by-step guidance to implementing automatic features. Under such a plan, employees are enrolled automatically, at a set amount and in a predetermined investment choice. Employees have the ability to change the amount they save and the investment option—or opt out entirely at any time. A recent study by the Government Accountability Office (GAO) reports automatic enrollment plans can significantly increase participation rates to levels as high as 95 percent.

"We wanted to provide educational institutions and non-profits that have 403(b) plans a one-stop resource covering everything from the basics of automatic enrollment to best practices such as automatic escalation," said John Gannon, Senior Vice President of FINRA, which is a founding partner of the Retirement Made Simpler coalition. "The 403(b) Toolkit offers step-by-step guidance and sample communications to help simplify implementation."

Employers that offer 403(b) plans can find the comprehensive guide to implementing automatic features on the RMS website at www.RetirementMadeSimpler.org/403b. The resource includes basic facts, benefits to employers and sample forms, such as new employee notice of enrollment and opt-out forms. The toolkit also explains changes to the retirement fund landscape established by the Pension Protection Act. A 403(b) plan is similar to a 401(k), but is designed for employees of public schools, some non-profits and cooperative hospital service organizations.

Retirement Made Simpler is a coalition formed by AARP, the Financial Industry Regulatory Authority (FINRA) and the Retirement Security Project (RSP). The coalition was created specifically to inspire and support employers who want to help their employees save more for retirement. By providing companies with the tools and information they need to automate their retirement plans, more Americans will achieve a safe and secure retirement. For more information, visit www.RetirementMadeSimpler.org.

SOURCE Retirement Made Simpler (RMS)