Prudential Retirement now offers an Autopilot Impact Tool, an interactive, PC-based resource, that allows clients to see the impact of these two autopilot options. Prudential enters information about the current plan, and then adds relevant participant and financial data, based on a series of screen prompts.
The Autopilot Impact Tool analyzes the information and calculates the effect, providing a breakdown of how the adoption of auto enrollment and auto contribution increases will impact plan participation, plan deferral rates, and overall plan costs. The tool also demonstrates how any potential increase in plan costs could be offset by PPA “Safe Harbor” regulations, which can exempt sponsors from compliance testing and contribution caps for highly compensated participants.
Variety of Variables
James Mallozzi, senior vice president and head of Marketing, Product, and Advisory Services, Prudential Retirement, notes that Prudential Retirement’s Autopilot Impact Tool allows for the evaluation of a wide variety of variables for plan sponsors. For example, when assessing the impact of the automatic enrollment feature, the tool permits a number of different initial contribution rates to determine which works best for the plan and for participants. Similarly, the tool can analyze the impact of different contribution-increase schedules, comparing and contrasting the effect of, say, a one percent per-year increase with a two percent per-year increase, according to a press release.
The Autopilot Impact Tool is available not only for existing Prudential Retirement clients, but also for prospective clients and for Prudential’s advisor partners to use with their clients and prospects.
For more information on Prudential Retirement’s Autopilot Impact Tool, please call 1.800.353.2847.