In July 2019, the County of San Bernardino (the County) rolled out a pivotal automatic enrollment 457(b) Deferred Compensation Plan enhancement for current employees and new hires in eligible bargaining units at a 1% contribution rate. Since California law prohibits governmental employers from unilaterally implementing automatic enrollment, the County began collectively bargaining an automatic enrollment feature for our voluntary 457(b) Deferred Compensation Plan into various Memorandums of Understanding (MOU’s). When bargaining units signed an MOU, the new auto enrollment feature becomes effective 90 days after the MOU effective date.
The automatic enrollment implementation and promotional materials drove outstanding results including 5,420 new 457(b) plan enrollments and an uptick of the participation rate reaching 80%, a 24.6% increase. Outreach continues for auto enrollment with additional unions to help participants achieve better retirement outcomes.
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- July 22, 2020 Create Date
- August 31, 2023 Last Updated
