Seventeen percent of 401(k) plan sponsors offered automatic enrollment at the end of 2005, up from 10.5% a year earlier, according to a Profit Sharing/401(k) Council of America survey.
The results of PSCA's 49th annual survey of profit-sharing and 401(k) plans, released today, show automatic enrollment was used by 34.3% of plans with 5,000 or more participants but only by 3.5% of plans with fewer than 50 participants. The typical plan has about 70% of assets invested in equities. The most frequently used funds are active domestic equity, 32% of all assets; indexed domestic equity funds, 9.7%; balanced stock/bond funds, 9.2%; and stable value funds, 8.9%.
PSCA surveyed executives at 1,106 plans at year-end 2005.