Unhappy with plan participation rates, Ohio Deferred Compensation Executive Director Keith Overly looked to behavioral finance for guidance.
Mr. Overly, who first became interested in behavioral finance after meeting pioneering behavioral economist Richard Thaler almost a decade ago, utilized the assistance of the National Association of Retirement Plan Participants to help redesign the plan's opt-in form, which is used by most state agencies to enroll employees.
Through NARPP, Dartmouth College professor Punam Keller, who is a contributing partner to the non-profit organization, made suggestions — grounded in her concept of enhanced active choice — on how to simplify the form's message and improve its visuals. Ohio Deferred saw enrollment improvements in its first six months using the form.
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