Announcements

March 27, 2024

Take advantage of auto enrollment and eligibility tracking services

Capital Group offers automatic enrollment and eligibility tracking services for RecordkeeperDirect® plans which can help sponsors comply with the SECURE 2.0 Act of 2022.

SECURE 2.0 requires new 401(k) and 403(b) plans established on or after December 29, 2022, to implement automatic enrollment and escalation for plan years beginning in 2025 (unless an exemption applies). 

To support RecordkeeperDirect clients with this requirement, we offer two services that are available to all RecordkeeperDirect plans:

  • Automatic enrollment service: Our automatic enrollment service can support plans implementing automatic enrollment provisions, including those structured to meet the SECURE 2.0 required automatic enrollment requirements. Leveraging our online enrollment capabilities, we will notify the designated plan contact(s) when eligible employees should be automatically enrolled at the plan’s default deferral rate, as well as when employees make an affirmative election or decline enrollment. For plans with automatic escalation, we will also notify the plan contact when it is time to increase deferrals for impacted participants.
  • Employee deferral eligibility tracking services: For plans with an eligibility requirement of at least 60 days of service, we now offer services to track employees’ progress toward eligibility. These optional services can accommodate plans that use an elapsed time or actual hours computation method to determine eligibility. We will notify the plan contact when an employee is approaching eligibility and automatically update the employee’s status when all requirements have been met. These services are available to plans with or without an automatic enrollment provision.
     

Clients with an automatic enrollment provision can get further support by onboarding our payroll integration services.

Plan sponsors who want to add these services should submit an Automatic Enrollment Services Election form along with a Participant Data Supplement file which is used to provide additional participant-level data that is required for the services to function properly. PlanPremier® plans already have auto enrollment support services, including eligibility tracking.

For more information about these services, review the RecordkeeperDirect Automatic Enrollment Overview guide or the Administration guide. If you have any questions, call us at (800) 421-6019. 

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