Abstract

http://ssrn.com/abstract=2181649
 


 



Automatic Enrollment, Employee Compensation, and Retirement Security


Barbara A. Butrica


The Urban Institute

Nadia S. Karamcheva


Urban Institute; Boston College - Center for Retirement Research

November 1, 2012

Center for Retirement Research at Boston College Working Paper No. 2012-25

Abstract:     
This study uses restricted microdata from the National Compensation Survey to examine the impact of auto enrollment on employee compensation. By boosting plan participation, automatic enrollment likely increases employer costs when previously unenrolled workers receive matching retirement plan contributions. Our data show significant negative correlation between employer match rates and automatic enrollment provision. We find no evidence that total costs differ between firms with and without automatic enrollment, and no evidence that defined contribution costs crowd out other forms of compensation, suggesting that firms might be lowering their potential and/or default match rates enough to completely offset the higher costs of automatic enrollment without needing to reduce other compensation costs.

Number of Pages in PDF File: 45

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Date posted: November 28, 2012  

Suggested Citation

Butrica, Barbara A. and Karamcheva, Nadia S., Automatic Enrollment, Employee Compensation, and Retirement Security (November 1, 2012). Center for Retirement Research at Boston College Working Paper No. 2012-25. Available at SSRN: http://ssrn.com/abstract=2181649 or http://dx.doi.org/10.2139/ssrn.2181649

Contact Information

Barbara A. Butrica (Contact Author)
The Urban Institute ( email )
2100 M Street, N.W.
Washington, DC 20037
United States
Nadia S. Karamcheva
Urban Institute ( email )
2100 M Street NW
Washington, DC 20037
United States
Boston College - Center for Retirement Research ( email )
Fulton Hall 550
Chestnut Hill, MA 02467
United States
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