Examining Public Employee Attitudes Toward Retirement and Auto-Enrollment.

 
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Approximately half of state and local employees approve of auto-enrollment in defined contribution plans and 77 percent would choose to stay in a plan if auto-enrolled, the Center for State and Local Government Excellence and ICMA-RC found. Few states currently offer auto-enrollment supplemental retirement plans (SRPs), and 77 percent would choose to stay in a plan if auto-enrolled. SRPs are a retirement plan feature that is widely available in the private sector.

The responsibility of saving for retirement in the public sector is shifting from the employer to the employee in many jurisdictions, the report noted, and the fact that those presented with a 7 percent default settled on a significantly higher rate than the group given the 1 percent default rate suggests that employers, retirement plan providers, and policymakers should consider how small nudges--such as changing the default rate for auto-enrollment in an SRP--can combat inertia and affect an employees' ability to save for retirement.

Other key findings from the...

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