A support services company is preparing for changes in the laws and regulations governing 401(k) retirement plans.
BISYS Group Inc., Roseland, N.J., says it is introducing the (k)ruise Control package of automatic enrollment features for 401(k) plan sponsors and advisors.
Congress recently included a provision permitting employers to enroll employees in 401(k) plans automatically in the Pension Protection Act of 2006.
The (k)ruise Control package will help plans implement the new rules, which take effect in 2008, by adjusting initial, minimum and maximum deferral rates; changing the schedule governing all eligible employees’ deferral increases; and defining default investments.
BISYS also has developed a communications program to explain the auto-enrollment changes to employees.
Employees will retain the right to drop out of the auto-enrollment program and adjust their deferral levels and asset allocations, BISYS says.