Automatic Enrollment Arrangements

Help Your Employees Maximize Their Retirement Savings

Why Consider Adopting an Automatic Enrollment Arrangement?

Automatic enrollment arrangements can provide an easy way for 401(k) and 403(b) plan sponsors to increase employee participation.

Choose the Automatic Enrollment Arrangement that Works Best for Your Organization

Mutual of America offers three types of automatic enrollment arrangements:
  1. Automatic Contribution Arrangement (ACA)
  2. Eligible Automatic Contribution Arrangement (EACA)
  3. Qualified Automatic Contribution Arrangement (QACA)

Mutual of America’s Qualified Default Investment Alternative Funds

The following investment funds are offered under Mutual of America's group annuity contracts as Qualified Default Investment Alternative (QDIA) funds:
  • Mutual of America Retirement Funds, which collectively constitute one QDIA
  • Mutual of America Composite Fund
  • Fidelity© VIP Asset Manager Portfolio
  • Calvert VP SRI Balanced Portfolio
These funds meet the Department of Labor (DOL) regulation’s definition of a QDIA.

Mutual of America SponsorConnect® Adds Value

SponsorConnect, Mutual of America's Internet-based plan administration system, supports a fully compliant automatic enrollment feature for 401(k) and 403(b) Thrift plan sponsors who adopt this provision. SponsorConnect allows for default investment alternatives, automatic increase in deferral rates and tracking of notification requirements – all important requirements of an automatic enrollment provision.
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1Pursuant to DOL regulations, QDIAs are default investments that, if used by defined contribution plans, profit-sharing plans, 401(k) and 403(b) plans, the plan fiduciary may not incur liability for investment losses as a result of investing participant elective deferrals in them without affirmative consent from the participant.

2Minimum employer contributions: Employer Non-Matching is 3% of employee’s compensation. Employer Matching is at least 100% of the first 1% and 50% of the next 5% of compensation deferred by the employee. Maximum employer match is 6%.

3Minimum default deferral percentage cannot be less than 3% during the first full plan year, 4% during the 2nd plan year, 5% during the 3rd plan year and 6% thereafter. Maximum deferral percentage is 10%. E.g., if an employee is hired in April of the current plan year, they would be subject to the 3% deferral percentage for the remainder of the current plan year as well as the following plan year.

4Participants may opt out and withdraw deferrals made by automatic contribution (plus or minus earnings) without penalty for up to 90 days after the date of the first automatic deferral.

5Employee elective deferrals are always 100% vested.

6For purposes of the notice that must be provided to eligible employees, Mutual of America provides sample notices that include the following required information: a description of the Qualified Default Investment Alternative, the investment objectives, risk/return characteristics, fees and expenses.

To learn more about Mutual of America's automatic enrollment arrangements, including plan amendment and notice requirements, call your local Mutual of America Regional Office, or today.

Before investing, you should carefully consider the investment objectives, risks, charges and expenses of the variable annuity contract and underlying investment funds. This and other information is contained in the contract prospectus or brochure and underlying funds prospectuses and summary prospectuses. Please read the contract prospectus or brochure and underlying funds prospectuses and summary prospectuses carefully before investing. The contract prospectus or brochure and underlying fund prospectuses and summary prospectuses can be obtained by mail or by calling .

Mutual of America's group and individual retirement products are variable annuity contracts and are suitable for long-term investing, particularly for retirement savings. The value of a variable annuity contract will fluctuate depending on the performance of the Separate Account investment funds you choose. Upon redemption, you could receive more or less than the principal amount invested. A variable annuity contract provides no additional tax-deferred treatment of benefits beyond the treatment provided to any qualified retirement plan or IRA by applicable tax law. You should carefully consider a variable annuity contract's other features before making a decision.

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