Announcements
October 19, 2023
Introducing auto enrollment and eligibility tracking services
Capital Group is pleased to introduce automatic enrollment support for RecordkeeperDirect® plans, to help sponsors comply with the SECURE 2.0 Act of 2022.
SECURE 2.0 requires new 401(k) and 403(b) plans established on or after December 29, 2022, to implement automatic enrollment and escalation for plan years beginning in 2025 (unless an exemption applies).
To support RecordkeeperDirect clients with this requirement, we now offer two new services:
- Automatic enrollment service: Our new automatic enrollment service can support plans implementing automatic enrollment provisions, including those structured to meet the SECURE 2.0 required automatic enrollment provision. Leveraging our online enrollment capabilities, we will notify the designated plan contact(s) when eligible employees should be automatically enrolled at the plan’s default deferral rate, as well as when employees make an affirmative election or decline enrollment. For plans with automatic escalation, we will also notify the plan contact when it is time to increase deferrals for impacted participants.
- Employee Deferral Eligibility Tracking Services: For plans with an eligibility requirement of at least 60 days of service, we now offer services to track employees’ progress toward eligibility. These optional services can accommodate plans that use an elapsed time or actual hours computation method to determine eligibility. We will notify the plan contact when an employee is approaching eligibility and automatically update the employee’s status when all requirements have been met. These services are available to plans with or without an automatic enrollment provision.
Clients with an automatic enrollment provision can get further support by onboarding our payroll integration services.
Automatic enrollment and eligibility tracking services have now been incorporated into implementation paperwork for new RecordkeeperDirect clients and are offered at no additional cost. We will soon be contacting existing clients with information about how they can also take advantage of these features. PlanPremier® plans already have auto enrollment support services, including eligibility tracking.
For more information about these services, review the RecordkeeperDirect Automatic Enrollment Overview guide, visit the Help Center or review the Administration guide. If you have any questions, call us at (800) 421-6019.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only. Use of this website and materials is also subject to approval by your home office.
American Funds Distributors, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.