NAGDCA Best Practice Guide – Plan Features
Click here to access the full Plan Design guide.
San Mateo County Deferred Compensation Plan
In 2016, San Mateo County implemented a provision to automatically enroll new hires at a 1% deferral rate. As a result of this effort, the County witnessed participation rates increase dramatically, from 62% to 82%, in a span of three years. This was a great success, however the automatic enrollment provision only applied to new hires and these new hires were saving at 1% of pay (far lower than recommended savings rates). Looking at the plan data, the County decided there was more we could do to help employees save adequately for retirement. We decided to make some additional plan design enhancements in 2019.
To boost participation and savings rates even further, the County negotiated with various collective bargaining units and management groups to implement an automatic enrollment and an auto-escalate feature (from 1% – 5%) for current non-saving employees and those saving under 5% of pay. We believe these new provisions will help County employees get even closer to reaching their retirement goals.
Click here for the County’s story of overcoming obstacles to implement automatic plan features for their participants.