Best Practices for Addressing Automatic Participant Rollovers

While automatic enrollment has increased plan participation, it is also contributing to the growing percent of separated accounts where participants have left money in a retirement plan upon retiring or changing jobs. This is just one factor driving the increasing need for plan sponsors to clean up their retirement plan account books.

Plan sponsors often need help addressing the issue of accumulating separated accounts because they are adding unnecessary fees and complexity to their plan administration. Plan clean up with DST’s Automatic Rollover Program can help to:

  • Reduce plan expenses
  • Potentially eliminate the cost of an audit
  • Simplify participant disclosures
  • Eliminate the need to track former employee
  • Reduce fiduciary responsibility

DST’s white paper, “Best Practices for Addressing Automatic Participant Rollovers,” provides a comprehensive overview of automatic rollover benefits, regulatory requirements, and service options.

Complete the following form to download the white paper:

DST's Automatic Rollover Program (ARP)

An automated tool for answering the mounting challenge of accumulated small balance accounts left behind.

As a result of the 2001 Economic Growth and Tax Relief Reconciliation Act (EGTRRA) and the 2004 Department of Labor (DOL) fiduciary safe harbor provisions, plan sponsors can execute automatic rollover (or involuntary rollover) programs to purge small balance accounts of terminated participants off their books and into a pre-selected IRA.

DST’s Automatic Rollover Program facilitates the process for plan sponsors, by offering:

  • A choice of six IRA options
  • Electronic enrollment and paperless transaction processing
  • Automatic IRA openings within 24 hours
  • Plan sponsor enrollment, notification, and contractual processes
  • Reconciled reports on fund activity
  • Programs for defined benefit and defined contribution plans and pension de-risking events

Best Practices for Addressing Automatic Participant Rollover illustration

Call 800.525.4237 for a one-on-one walkthrough or contact us.

Featured Insights
  • White Paper: A Call to Action: Improving the Rollover Experience Post-DOL
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  • Case Study: DST Supercharges a Retirement Planning Microsite
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