Automatic 401(k)s Aid Retirement Readiness

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In the first paragraph, the article states, "The main cause of the improvement, EBRI said, was the 2006 Pension Protection Act, which requires the automatic enrollment of employees in 401(k) plans unless they opt out of the programs."

While I agree with the notion that auto enrollment likely does increase overall participation, the 2006 PPA did not "require" this feature. It only provided clear definitions and rules for "allowing" auto-enrollment. I endorse auto-enrollment, but it's not required.

I'm surprised that US News & World Report had this error in their article.

Paul Massey of TX 9:46PM July 17, 2010

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The Best Life

Philip Moeller, contributing editor for U.S. News Money, writes about achieving success and happiness in older age.

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