Press Release
ADP Launches Offering of Auto-Pilot Savings Feature for Plan Participants
ROSELAND, NJ, November 10, 2003 -- ADP(R), Employer Services (ES) division, a leading provider of integrated outsourced payroll and human resources services, today announced plans to make its automatic retirement savings feature Save Smart(SM) available to 401k enrollees and plan participants in companies of all sizes effective January 1, 2004. With the Save Smart feature, employees can elect to have their tax-deferred 401k payroll deductions automatically increase in the future, typically, around the time of their next pay increase or on a specified date each year. This powerful automatic 401k savings tool is intended to help employees save more for their retirement on a pre-programmed basis.
While variations of automatic savings features have been tried and tested by larger companies that sponsor 401k plans, ADP Retirement Services will now be making it available to plan participants of all of its small and mid-size clients. If elected, employees may choose to increase their contribution levels by 1, 2, or 3 percentage points each year, up to the maximum they want to save (subject to their plan limits), as well as select the month in which they wish the increase to occur.
"We've found that when employees sign up for a 401k plan, they often fail to go back and increase their contribution levels even when they are financially able and willing to do so," said Kendall Kay, Vice President, Marketing, Strategic Planning and Business Development for ADP Retirement Services. "Save Smart puts employees in control by allowing them to determine when and by how much they will increase their contribution levels. This increases their comfort level as employees can allocate a portion of their future pay raises toward their retirement savings without noticing much of a difference in their take home pay."
The Save Smart feature helps employers provide yet another retirement planning tool for employees to save more for the future in a convenient and painless way. Save Smart can be combined with existing ADP features, such as ADP's automatic Account Rebalancing, to help employees manage both their payroll deductions and retirement accounts. An added benefit of the Save Smart feature is that by making it available to participants at all levels, it may help employer plans to pass nondiscrimination tests. ADP will help employers to encourage Save Smart use by including information about it in enrollment materials and participant statements, and on sponsor and participant Web sites.
"Most working people would agree that saving for their retirement is one of their top financial priorities," said Kay. "Employees look to their employers for convenient tools and services to help them achieve this. We think the Save Smart concept should be universally available to all employees in companies of all sizes. It is our goal to help employers to move the needle in the right direction - and enable their employees to save more for retirement."
About ADP
Automatic Data Processing, Inc. (NYSE:ADP) is one of the largest independent computing services firms in the world, with $7 billion in revenue and approximately 500,000 clients. ADP Employer Services (ES), a division of ADP, Inc., is a leading provider of integrated business administrative solutions that help its over 460,000 clients efficiently manage their internal processes, allowing them to focus on core competencies. ADP Employer Services' offerings include both traditional and Internet-based outsourcing products and services, giving clients the ability to select from ADP's comprehensive range of World Class Service solutions. Services include: payroll, tax regulatory management, HRMS, benefits administration, time and labor management, retirement plan services, online recruiting, PEO services, and employment screening and selection. For more information about ADP Employer Services, or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company's Web site at www.adp.com.
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