Automatic Enrollment and Participation in South Dakota’s Supplemental Retirement Saving Plan

Numerous studies suggest that automatic enrollment increases participation in retirement saving plans. But virtually all of this research pertains to private sector firms offering only a 401(k) plan. In contrast, no major study to date has looked at how automatic enrollment affects participation in supplemental retirement plans offered by state governments, which tend to provide richer retirement benefits than those typically offered in the private sector. This paper adds to the literature by examining the effects of automatic enrollment on the state of South Dakota’s supplemental retirement saving plan (SRP), which is a 457(b) plan.