Circle Company Associates Inc., Boston, hired online service provider Emplanet to run its $150,000 401(k) plan, replacing Paychex, said David Smith, senior accounting manager. Circle replaced the eight mutual funds offered by Paychex with the 30 funds offered by Emplanet.
Circle executives are adding automatic enrollment in mid-March, Mr. Smith said. The default deferral rate will be 3%; the default fund is Emplanet’s stable-value fund. At some point, Circle also expects to add a company match, he added.
Circle switched providers to gain access to a wider variety of mutual funds and boost its participation rate, Mr. Smith said. All 230 employees are eligible; participation has increased to 142 employees, from 52 in January. The average deferral rate is 8%, he said.
