Comments on: Get ready for employee complaints of ‘forced’ retirement saving http://www.hrmorning.com/get-ready-for-employee-complaints-of-forced-retirement-saving/ Your daily dose of HR Thu, 18 Mar 2010 13:43:13 -0400 http://wordpress.org/?v=abc hourly 1 By: Lee http://www.hrmorning.com/get-ready-for-employee-complaints-of-forced-retirement-saving/comment-page-1/#comment-28989 Lee Thu, 15 Oct 2009 17:43:21 +0000 http://www.hrmorning.com/?p=4615#comment-28989 Since schools dont seem to teach much on money management, young adults must learn the importance of savings through life experience. Rare is the retired person with TOO much money. Ask most - they'll tell you that they wished they would have saved more for retirement. This is not a forced action. It merely allows employers to set the tone regarding the importance of savings. Most of the new employees (young&old) at our company go along with the auto-enroll. They quickly learn the value of savings. I LOVE the idea of removed FICA deductions if a person can demonstrate retirement savings on their own. Too bad the govt needs our FICA money for yesterdays expenditures. Since schools dont seem to teach much on money management, young adults must learn the importance of savings through life experience. Rare is the retired person with TOO much money. Ask most – they’ll tell you that they wished they would have saved more for retirement.

This is not a forced action. It merely allows employers to set the tone regarding the importance of savings. Most of the new employees (young&old) at our company go along with the auto-enroll. They quickly learn the value of savings. I LOVE the idea of removed FICA deductions if a person can demonstrate retirement savings on their own. Too bad the govt needs our FICA money for yesterdays expenditures.

]]> By: Rose http://www.hrmorning.com/get-ready-for-employee-complaints-of-forced-retirement-saving/comment-page-1/#comment-27874 Rose Mon, 05 Oct 2009 17:21:01 +0000 http://www.hrmorning.com/?p=4615#comment-27874 In reply to Melissa... We do not have auto-enrollment and have always had over 90% participation in 401K. People will enroll if they wish to participate. Auto-enrollment because "people will forget to do the paperwork" is another insult to employees. What you neglected to touch on is how auto-enrollment helps the mare highly compensated of the organization. Taking more decision making away from people is the last thing this country needs. In reply to Melissa… We do not have auto-enrollment and have always had over 90% participation in 401K. People will enroll if they wish to participate. Auto-enrollment because “people will forget to do the paperwork” is another insult to employees. What you neglected to touch on is how auto-enrollment helps the mare highly compensated of the organization. Taking more decision making away from people is the last thing this country needs.

]]> By: cynthia http://www.hrmorning.com/get-ready-for-employee-complaints-of-forced-retirement-saving/comment-page-1/#comment-26462 cynthia Mon, 21 Sep 2009 20:49:56 +0000 http://www.hrmorning.com/?p=4615#comment-26462 I am kind of new at HR and benefit admin/ although I've been doing payroll for years. I am kind of torn, because I like the idea of a 401K plan. We currently don't have one at all, being a small company and I am hoping that my employer will soon make these changes. For small businesses this may be difficult to accomplish. Most of the comments in favor of this idea are those that have this already in place. However, I do enthusiastically agree that the government should stay out. The reason is simple: THEY'VE ALREADY TRIED THIS; ISN'T THIS HOW THE SS SYSTEM STARTED? I wasn't around when Social Security was established so correct me if I'm wrong, but I believe it was set up on the same principle; SOUNDED GREAT, BUT WHOA NELLIE.., LOOK AT WHAT'S GOING ON NOW.., It's now just another TAX desguised as a "retirement savings plan", this is my biggest fear. And a comment was made that people may not have this available to them when they retire: this is why I say - TAX. We pay for it, but can used it, the government uses it; sounds like TAX to me. What is to prevent them from doing this again in the future with the 401K plan? I really like the idea of keeping it in the private sector away from the government control. More education would be great, and more security for the people would be great too. I am kind of new at HR and benefit admin/ although I’ve been doing payroll for years. I am kind of torn, because I like the idea of a 401K plan. We currently don’t have one at all, being a small company and I am hoping that my employer will soon make these changes. For small businesses this may be difficult to accomplish. Most of the comments in favor of this idea are those that have this already in place. However, I do enthusiastically agree that the government should stay out. The reason is simple: THEY’VE ALREADY TRIED THIS; ISN’T THIS HOW THE SS SYSTEM STARTED? I wasn’t around when Social Security was established so correct me if I’m wrong, but I believe it was set up on the same principle; SOUNDED GREAT, BUT WHOA NELLIE.., LOOK AT WHAT’S GOING ON NOW.., It’s now just another TAX desguised as a “retirement savings plan”, this is my biggest fear. And a comment was made that people may not have this available to them when they retire: this is why I say – TAX. We pay for it, but can used it, the government uses it; sounds like TAX to me. What is to prevent them from doing this again in the future with the 401K plan?

I really like the idea of keeping it in the private sector away from the government control. More education would be great, and more security for the people would be great too.

]]> By: Melissa http://www.hrmorning.com/get-ready-for-employee-complaints-of-forced-retirement-saving/comment-page-1/#comment-26084 Melissa Fri, 18 Sep 2009 15:38:25 +0000 http://www.hrmorning.com/?p=4615#comment-26084 Just a few quick things from someone who work in the Retirement Plan Industry: *No one is being "forced" w/auto enrollment - you can opt out.... but isn't it human nature that we never want to complete paperwork? So, this helps those who won't fill out the form to save for retirement. *Mc Donalds was the first co. to be credited w/starting auto enroll years ago.... but in 2006, the Pension Protection Act pre-empted any state laws regarding payroll deductions without authorization & said auto enrollment was ok. *Years ago, Roosevelt said Soc. Security was never meant to be the sole support for retired individuals - its a 3 legged stool - social security, retirement plan, and personal savings. *We don't know if (or to what degree) social security will be there for younger people (myself included).... the Administration knows it -- so is making it "easier" to help companies help their ee's. *A retirement plan (whether there are any employer contributions or not) - is an employee benefit & there are costs & HR/personnel work associated w/it -- and I don't think ee's always realize that. *When I meet w/ee's, I DO try to encourage them to participate - even if its only $5 or $10 per pay... its easier to continue or increase savings once you've started.... and we do show them numbers -- of how saving "early" can make a difference in your nest egg. I could go on & on... but bottom line -- more and more, the burden of saving for retirement is on the employee.... and this is one way to help it along..... the next step (and one of my personal goals) is to help encourage employees to "not" take the cash & spend it when they change jobs!!! I agree w/Flel -- not sure what the idea being "no approval" is all about - I have to research...Pension Protection Act of 2006 opened the doors for auto enroll. Just a few quick things from someone who work in the Retirement Plan Industry:

*No one is being “forced” w/auto enrollment – you can opt out…. but isn’t it human nature that we never want to complete paperwork? So, this helps those who won’t fill out the form to save for retirement.
*Mc Donalds was the first co. to be credited w/starting auto enroll years ago…. but in 2006, the Pension Protection Act pre-empted any state laws regarding payroll deductions without authorization & said auto enrollment was ok.
*Years ago, Roosevelt said Soc. Security was never meant to be the sole support for retired individuals – its a 3 legged stool – social security, retirement plan, and personal savings.
*We don’t know if (or to what degree) social security will be there for younger people (myself included)…. the Administration knows it — so is making it “easier” to help companies help their ee’s.
*A retirement plan (whether there are any employer contributions or not) – is an employee benefit & there are costs & HR/personnel work associated w/it — and I don’t think ee’s always realize that.
*When I meet w/ee’s, I DO try to encourage them to participate – even if its only $5 or $10 per pay… its easier to continue or increase savings once you’ve started…. and we do show them numbers — of how saving “early” can make a difference in your nest egg.

I could go on & on… but bottom line — more and more, the burden of saving for retirement is on the employee…. and this is one way to help it along….. the next step (and one of my personal goals) is to help encourage employees to “not” take the cash & spend it when they change jobs!!!

I agree w/Flel — not sure what the idea being “no approval” is all about – I have to research…Pension Protection Act of 2006 opened the doors for auto enroll.

]]> By: HRP http://www.hrmorning.com/get-ready-for-employee-complaints-of-forced-retirement-saving/comment-page-1/#comment-25918 HRP Thu, 17 Sep 2009 15:02:45 +0000 http://www.hrmorning.com/?p=4615#comment-25918 I'm ok with the auto enrollment, but the escalator factor gives me heartburn, unless you can auto "de-escalate." Why doesn't Obama clean up his own issues before trying to meddle in our personal affairs....it appears he isn't doing well at either. If you hear I'm from the government and I'm here to help you...run the other way! I’m ok with the auto enrollment, but the escalator factor gives me heartburn, unless you can auto “de-escalate.” Why doesn’t Obama clean up his own issues before trying to meddle in our personal affairs….it appears he isn’t doing well at either. If you hear I’m from the government and I’m here to help you…run the other way!

]]> By: Karen http://www.hrmorning.com/get-ready-for-employee-complaints-of-forced-retirement-saving/comment-page-1/#comment-25810 Karen Wed, 16 Sep 2009 21:32:43 +0000 http://www.hrmorning.com/?p=4615#comment-25810 I will never contribute to a 401(k) plan again. Not after Amercians lost over half of their savings in the stockmarket crash. I put extra money on my house payment. No one can take that away from me. We have auto-enrollment, but most of our employees opt out. There's no trust in the market or the dollar these days. I will never contribute to a 401(k) plan again. Not after Amercians lost over half of their savings in the stockmarket crash. I put extra money on my house payment. No one can take that away from me. We have auto-enrollment, but most of our employees opt out. There’s no trust in the market or the dollar these days.

]]> By: Ann http://www.hrmorning.com/get-ready-for-employee-complaints-of-forced-retirement-saving/comment-page-1/#comment-25806 Ann Wed, 16 Sep 2009 20:33:10 +0000 http://www.hrmorning.com/?p=4615#comment-25806 Jeffery - You are right - We are forced to FICA. When I was reading all the replies above, I was looking for FICA. How about this: if you put money with required minimum to 401K, then you don't need to pay FICA? We are old enough to take care of ourselves. Jeffery – You are right – We are forced to FICA. When I was reading all the replies above, I was looking for FICA. How about this: if you put money with required minimum to 401K, then you don’t need to pay FICA? We are old enough to take care of ourselves.

]]> By: Rose http://www.hrmorning.com/get-ready-for-employee-complaints-of-forced-retirement-saving/comment-page-1/#comment-25755 Rose Wed, 16 Sep 2009 12:49:55 +0000 http://www.hrmorning.com/?p=4615#comment-25755 The option of auto-enrollment in our 401K was made available to us when we changed providers. One of the main selling points of doing this was to help our higher compensated employees make larger contributions to their accounts with greater participation by our lower compensated employees. This takes 401k out of the "benefit" arena. Leave participation in 401K where it belongs - at the request and desire of the employee. The government needs to stay out of it. The option of auto-enrollment in our 401K was made available to us when we changed providers. One of the main selling points of doing this was to help our higher compensated employees make larger contributions to their accounts with greater participation by our lower compensated employees. This takes 401k out of the “benefit” arena. Leave participation in 401K where it belongs – at the request and desire of the employee. The government needs to stay out of it.

]]> By: Jeffrey http://www.hrmorning.com/get-ready-for-employee-complaints-of-forced-retirement-saving/comment-page-1/#comment-25633 Jeffrey Tue, 15 Sep 2009 17:48:36 +0000 http://www.hrmorning.com/?p=4615#comment-25633 We already have forced retirement savings it's call FICA. We already have forced retirement savings it’s call FICA.

]]> By: SH Says http://www.hrmorning.com/get-ready-for-employee-complaints-of-forced-retirement-saving/comment-page-1/#comment-25616 SH Says Tue, 15 Sep 2009 16:29:03 +0000 http://www.hrmorning.com/?p=4615#comment-25616 All eligible employees at our company must complete a contribution election form, indicating their contribution amount. If they do not wish to participate, they indicate a contribution amount of zero. The same thing applied to my last employer. I'm not sure how O'Bama's plan would complicate this. For what it's worth, both companies had about 150 to 200 employees. All eligible employees at our company must complete a contribution election form, indicating their contribution amount. If they do not wish to participate, they indicate a contribution amount of zero. The same thing applied to my last employer. I’m not sure how O’Bama’s plan would complicate this. For what it’s worth, both companies had about 150 to 200 employees.

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