5 key considerations for reenrollment

Reenrollment offers your employees the opportunity to take advantage of your latest plan design and investment choices. Here are 5 key benefits.


1. Engage inactive participants

Retirement outcomes can suffer if inaction sets in and participants infrequently review their investments. Reenrollment provides an opportunity to help employees in their prime savings years to boost account balances, course correct outdated investment choices, and possibly keep near-retirees from poor diversification and overexposure to risk.

Engage inactive participants

2. Provide QDIA opportunity to longer-term employee population

Many retirement plans have two populations: those who are in the QDIA and those who are not. Longer-term employees who were defaulted into an earlier investment option or made their own investment choices, may be invested with too little growth exposure or too much risk for the current stages of their career. BlackRock can work with plan sponsors to help provide all participants the opportunity to be invested in the plan's QDIA.

QDIA opportunity

3. Offer potential for enhanced fiduciary protection

Reenrollment can be used to promote and increase the use of the plan's QDIA. You'll be able to: enroll new hires in your QDIA, transfer existing participants' current investments to your QDIA and enroll non-participating employees. By doing so, you may enjoy enhanced fiduciary protection from investment losses a participant may incur.

fiduciary protection

4. Be flexible in your solution

Reenrollment is a surprisingly flexible tool that you can dial up or down according to your goals and resources. We can help review the state of your plan, considering what specific dynamics you want to tackle, to help scale reenrollment efforts to fit your plan's particular situation.

Be flexible in your solution

5. Boost plan participant loyalty

In our experience you may not encounter as much employee opposition to reenrollment as you expect. In fact, four out of five participants in the BlackRock Annual Retirement Survey believe that the more their employer improves their plan, the more the company cares about them as individuals*. In that same survey, 94% of plan sponsors who have reenrolled said that their employees responded favorably. Plus, your employees always have the option to opt out.

Boost plan