A recent trend in DC plans is to go on “auto-pilot,” says Alain Malaket, senior director of pensions and benefits with George Weston Ltd./Loblaw Companies Ltd. Tools such as auto-enrollment, mandatory participation and auto-escalation are becoming increasingly popular. However, Malaket warns that these systems might need a boost from additional programs such as employee engagement and education initiatives.
“I’m not sure that from an employer perspective, [these tools] really give the employee the proper perspective of the program that’s being rolled out or an appreciation of the program that’s rolled out,” he says. “I’m not sure that a one-size-fits-all solution is the right way. Think of how powerful it would be if you could combine those new tools with employee engagement, employee education and an understanding of the financial planning that’s required.”
Watch the video to find out what else Malaket has to say.