No Nudge Goes Unpunished

Howard Gleckman highlights a potential problem with 401(k) plans that automatically enroll employees:

Mauricio and Barbara found that employer match rates are about 7percentage points lower for opt-out plans. They can't say for surewhether auto enrollment causes lower match rates. But it sure ispossible. After all, if more employees participate, their employerswill have to spend more to match their contributions. Whatever thecause, it seems that while auto-enrollment may increase the number...