Mandatory Retirement Plans Help Higher Ed Employees
Mandatory defined contribution retirement plans have been prevalent in both public and private higher education institutions. An analysis of 415 plans recordkept by Fidelity Investments finds 68% of public colleges and universities provide at least one mandatory retirement plan to employees, as do 78% of private colleges and universities.
Among the advantages of mandatory plan design are full enrollment of benefits-eligible employees and automatic, nondiscretionary contributions, according to a Fidelity report. Click here for an overview from PlanSponsor.com.