“In 22 states, plan sponsors can use automatic enrollment right away,” said Matt Spina, executive vice president and chief operating officer at AdminPartners.
Federal
and state lawmakers have responded to the retirement crisis with the idea of
automatic individual retirement account (IRA) plans.
President
Obama introduced the myRA program in his 2014 State of the Union address. Senator Marco Rubio (R-Florida) suggested
private-sector workers be allowed to participate in the Federal Thrift Savings
Plan (TSP), and several states have established their own state-run plans for private workers that do not access to employer-sponsored retirement plans.
Jessica
Kovachick, registered principal and retirement plans specialist at The Legend
Group, told attendees at the National Tax-Deferred Savings Association (NTSA) 403(b) Summit in Nashville, among 403(b)
plans for public school systems, only about 30% of eligible participants are
participating. “That is a part of this nationwide retirement crisis too,” she
said.
Now
is the time for K-12 403(b) plan sponsors to consider using automatic
enrollment, Kovachick told summit attendees, noting that research shows plans with
automatic enrollment average about 21% higher participation rates than plans
that do not.
Ray
Harmon, Esq., government affairs counsel at the American Retirement Association
in Washington, D.C., said employers should consider whether they want to
provide something “bare bones” to participants—i.e., the myRA program—or
develop a more beneficial and attractive benefit for employees.
NEXT: Best practices for implementing automatic enrollment.
Matt
Spina, executive vice president and chief operating officer at AdminPartners, said
the NTSA formed a committee to research the use of automatic plan features for
K-12 and governmental plans. It has developed a guide of suggested best
practices for introducing automatic enrollment.
One
issue preventing school systems in many states from implementing the feature is
state law that doesn’t allow employers to divert pay from employee paychecks.
But, Spina noted, there are three states in which automatic enrollment for non-Employee
Retirement Income Security Act (ERISA) plans has been made legal—Colorado,
Kansas and Arkansas—and there are 19 states in which automatic enrollment is
legal because the federal government allows it. These include Washington,
California, Idaho, Arizona, New Mexico, Texas, Nebraska, Iowa, Michigan,
Kentucky, South Carolina, North Carolina, Virginia, Maryland, Delaware, New
Jersey, Connecticut, New York and New Hampshire.
“So,
in 22 states, plan sponsors can use automatic enrollment right away,” Spina
said. He added that plan sponsors and advisers should keep checking because
more states could make it legal in the future. However, he noted, there may
also be restrictions in collective bargaining agreements that plan sponsors may
have to negotiate.
For
school systems that do implement automatic enrollment, the NTSA guide suggests
they use best practices used by ERISA plans; the default investment should be a
qualified default investment alternative (QDIA) as defined by ERISA. In
addition, plan sponsors should designate which person or entity is going to
handle automatic enrollment so as not to run afoul of universal availability rules.
The NTSA guide includes an instructional checklist, model participant notice
and frequently asked questions (FAQs) that Spina said the association
recommends plan sponsors include in plan documents.
Spina
also suggested that advisers working with plans that use automatic enrollment
should offer participants plan-level, product-neutral financial literacy
education.
“Automatic enrollment
will help participants by keeping participation rates increasing and
participant assets growing,” Spina concluded.
The
announcement said Lew will select a notable woman—with a focus on celebrating a
champion for our inclusive democracy. The Treasury is asking for public input
about who to select and the design of the bill by using any social media with
the hashtag #TheNew10, or by using the website www.thenew10.treasury.gov.
Last
week, I asked NewsDash readers which woman they think should be chosen for the
new $10 bill. The clear winner was Eleanor Roosevelt, selected by 28.1% of
responding readers. The Statue of Liberty took second place, with 14% of
respondent votes.
Others
in the list provided were selected as follows:
Clara
Barton – 8.8%
Rosa
Parks – 4.4%
Frances Perkins – 1.7%
Betsy
Ross – 4.4%
Deborah
Sampson – 0%
Elizabeth
Cady Stanton – 4.4%
Sojourner
Truth – 1%
Harriet
Tubman – 6.1%
However,
19.3% of responding readers submitted their own suggestions for which woman
should be on the $10 bill—some serious, and some, I’m hoping, intended to be
funny. Those answers included:
Kim
Kardashian
Susan
B Anthony
Whomever
the first woman president ends up being (and I realize this means we may have
to wait awhile)
Rosie
the Riveter
Jeannette
Rankin
Phyllis
Diller
Caitlyn
Jenner
Condoleezza
Rice
My
daughter
Lucille
Ball
Queen
Isabella
Barbara
Jordan
Mary
Jo Kopechne
Hattie
Caraway
Wilma
Mankiller
Molly
Pitcher
Harriet
Beecher Stowe
Julia
Ward Howe
Elizabeth
Blackwell
Sandra
Day O’Connor (so wait until she passes)
Susan
Sarandon
In
verbatim comments, a large number of readers felt Andrew Jackson should be
replaced on the $20 and Alexander Hamilton should not be replaced. Some didn’t
like the idea of putting a woman on a bill at all, though there were more who
said things like “It’s about time!” Editor’s
Choice goes to the reader who said: “Really does it matter women, men, just
so it is someone who had a positive connection and leadership in United States.”
Thanks to everyone who participated in the survey!
Verbatim
Why
not?
I
don't feel any female from US history really deserves to be on the $10 bill
especially one who merits knocking off Alexander Hamilton. Maybe in a few more
decades there could be a more obvious choice like Hillary Clinton.
Actually
I think a woman should be on the $20 not the $10. I mean come on, really?
Andrew Jackson?
Change
the $20 and dump Jackson instead. In that case, Eleanor Roosevelt
Should
not remove a pillar of our country already on the $10 bill or any other bill.
Those men were chosen for a reason and for their contributions to our country
and do not deserve to be insulted at this point purely for the purposes of gratuitous
inclusiveness. If this happens it will eventually result in every bill being
changed so some so-called "misunderstood" group gets a representative
on currency. We cannot and should not pander to every single person's
self-interest at the expense of everyone else.
Most
presidents have been reflected. Don't remove a president from the bill. Remove
Ben Franklin and replace him
It's
about time!!!
Replace
that bum Andrew Jackson with a woman on the $20 and keep Alexander Hamilton who
helped set up monetary policies - duh!
Although
all of these women are worthy, I like the idea of the Statue of Liberty. She
most represents everyone in the U.S.A.
glad
to be rid of Hamilton; never did like his policies 😉
Why
not?
Verbatim (cont.)
It
seems the first Secretary of Treasury is a good person to feature on a bill. If
any of the current people were to be replaced on a bill, I would think it would
be Jackson on the $20.
Not
sure why we need a change, but making it all about a woman? Geez...pick a
notable American, male or female, for goodness sake!
It's
about time!
Really
does it matter women, men, just so it is someone who had a positive connection
and leadership in United States
How
politically correct this is. Guess this appeals to anyone who can't recognize
the significance of anyone who died before they were born.
Andrew
Jackson should be replaced by a woman on the 20, not Hamilton on the 10.
The
current image should remain on the $10 bill.
Based
on his accomplishments as the Secretary of the Treasury, I think they should
leave Hamilton on the $10 and put a woman on a different denomination bill.
Hillary
Clinton..... NOT!
Should
be the $20 bill instead...
Verbatim (cont.)
I'm
just joking about my answer :o)
Let's
go a bit more contemporary with a selection.
Keep
Hamilton on the $10. Replace Jackson on the $20.
Money's
money. As long as it's legal tender, I do not care whose picture is on it.
Let's
add her quote 'All I was doing was trying to get home from work.' to the $10
They
say money can't make you happy, but it would make me smile to see her face on
the $10 bill!
why
not honor Columbus' sponsor to discover America
Wow!
A woman on U.S. currency before one occupies the White House?! Hope to see both
in my lifetime (and we will!) so I'm pleased.
Long
overdue!
might want to wait to
see if Hillary becomes the first female president.
Verbatim (cont.)
A
stupid idea … if an individual should be honored (simply by virtue of their
gender), then why not have them put on the LARGEST denomination, replacing
Woodrow Wilson, on the $100,000 bill?
It
is long overdue
Saved
us from having Ted Kennedy as President.
It's
about time!
1st
female US Senator
It
should be the $20 bill instead. Hamilton deserves his place on our currency,
while Jackson does not.
My
understanding of the decision to put a woman on the $10 bill is to honor our
contributions to the inclusiveness of our democracy. In that case, a leader of
the women's suffrage movement is an appropriate choice.
Wrong
bill to change. Hamilton laid the foundation for managing a Treasury. Take
Jackson off the $20 instead.
These
are serious choices?
How about a collage
of "all the above"?
Verbatim (cont.)
About
darn time!
Great
Idea!
Perhaps
we should remove people from the bills and substitute national park icons. Get
rid of the notion of who is worthy to grace our currency and honor our natural
resources instead.
I'm
getting on my soapbox - putting a woman on a bill and claiming it shows
inclusion and equity is the worst sort of pandering. How about for every $10
you pay a man for the same job you stop paying me $7.50? Then I'd feel equal
and included. This is just for show and accomplishes nothing real.
It
should have been Wilma Mankiller replacing Andrew Jackson on the $20 bill;
there's something so right about replacing a murderer with a modern leader of
the people he slaughtered.
Can't
help myself, ala Henny Youngman, it doesn't matter as I never knew one (woman)
who could hold onto a $10 bill [ta-dump-tang].
It's
about time!
I
do not understand why Alexander Hamilton would be removed from the $10 bill.
Most discussions about him center only on his role as one of the most
influential of the country's Founding Fathers and in too many circles these
days that makes him not "politically correct". However very little
discussion about him involves looking at his strongly held abolitionist
beliefs. That is regrettable given the recent tragic events in South Carolina.
This
is the stupidest, most idiotic, most politically-(in)correct ridiculous move.
Lay it off to rampant historical sexism, but the notion that ANY of these women
warrants inclusion on our nation's currency is laughable on its face. Certainly
in comparison to Alexander Hamilton, who in every way measureable, established
this nation's financial system, set it on a sound foundation, and pulled
together a loose confederation of disparate states with the only real tool the
weak federal government had - money. This is a travesty - and blatant pandering
to what is admittedly a large block of voters. Ladies, let's not fall for this
charade. Do they really think we are that stupid? Are we?
Should
be the $20, not the $10 bill. Andrew Jackson less notable than A. Hamilton.
Secy Lew has heard this but doesn't care.
There
are so many good choices on your list, but I chose the statue of liberty
because America is all about freedom and she was our first lady about freedom.
Let's
replace the faces on all bills with powerful women, except Madonna, any
Kardashian and Gwyneth Paltrow,
NOTE: Responses
reflect the opinions of individual readers and not necessarily the stance of
Asset International or its affiliates.