In 2014, re-enrollment celebrated a major milestone with its tenth anniversary, officially marking a full decade since the first complete plan re-enrollment in a defined contribution plan was conducted in 2004. A landmark decision for re-enrollment was achieved in 2006, when the process of re-enrollment into a qualified default investment alternative (QDIA) was granted safe harbor protection by the Pension Protection Act of 2006 (PPA).
This paper looks at:
- The role a re-enrollment campaign can play in guiding all plan participants to an appropriate asset allocation
- Common reasons cited by plan sponsors for avoiding re-enrollment, and counterpoints to each
- Key elements of a successful implementation
- Re-enrollment terminology