Streamlining Retirement Plan Administration with Automated Features

Streamlining Retirement Plan Administration with Automated Features

Focus: streamlining retirement plan administration automated
Last reviewed: 2025-10-01

Automation covers auto‑enrollment, default investment elections, auto‑escalation, payroll file validations, eligibility tracking, and real‑time contribution monitoring. Properly configured, these reduce manual work and support fiduciary process by making plan operations consistent and auditable.

What “Automation” Means in Plan Administration

Automation covers auto‑enrollment, default investment elections, auto‑escalation, payroll file validations, eligibility tracking, and real‑time contribution monitoring. Properly configured, these reduce manual work and support fiduciary process by making plan operations consistent and auditable.

Key Benefits to Employers

Lower operational risk and data entry errors

Faster onboarding of new hires and eligibility tracking

Better participant outcomes via defaults (auto‑enrollment/auto‑escalation)

Improved documentation for fiduciary reviews

Governance Considerations

Automation does not replace governance—sponsors should document default elections, escalation caps, notice timing, and annual reviews of participation and opt‑out rates. Coordinate defaults with your QDIA and notice calendar.

Plan Sponsor Action Checklist

Checklist

Document your auto‑features (rates, caps, re‑enrollment policy).
Checklist

Align auto‑enrollment with a compliant QDIA and maintain notices.
Checklist

Review participation/deferral rates each year and adjust defaults as needed.
Checklist

Test payroll feeds for errors after each HRIS or vendor change.
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References

  • 29 CFR 2550.404c‑5 (QDIA fiduciary relief) – U.S. DOL / CFR.
  • IRS FAQs on automatic contribution arrangements and QACA.
© 2025 Pension Services, Inc. Educational content—no tax or legal advice.