Impact of Automatic Enrollment in Retirement Savings Plan for Public Employees

Principal Investigator: Robert Clark & Denis Pelletier

Sponsor: TIAA and the Pension Research Council at UPenn

Award Period: 8/31/2018 - 8/31/2019

Amount: $50,000

Description: This research will provide the first assessment of the impact of automatic enrollment policies adopted by a state or local government retirement system. The analysis employs data from the South Dakota Retirement System that includes all new hires between 2005 and 2016 covering the period before and after the adoption of automatic enrollment policies in 2009. Employees include university personnel, school teachers, and state, city, and county employees. In addition, to reporting the change in participation and contribution rates for the sample, the investigators will estimate annual opt-in probabilities for all new hires that were not covered by auto enrollment for up to ten years after employment and annual opt-out probabilities for those that were auto enrolled for up to five years after being auto enrolled. Separate analysis will be conducted for employees of the South Dakota University system and public school teachers.