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Lodi board backs automatic-enrollment 403(b) plan for staff with 1% default
Summary
The board voted 6–0 to recommend an automatic-enrollment 403(b) program through the district provider (WA Trust) with a 1% default contribution and an opt-out option, accompanied by staff education about the plan.
The Lodi School Board voted unanimously to recommend implementing an automatic-enrollment 403(b) tax-sheltered annuity program through the district’s provider, WA Trust, with a 1% default contribution for staff and an opt-out option.
Administration described the proposal as part of a broader fiscal-wellness and workforce-retention strategy. “Automatically enrolling employees in a 403(b) … fosters a culture of financial wellness and retirement savings,” the administrator said in presenting the recommendation. Board members asked how often staff would be asked to opt in or out and whether the contribution is pretax; administrators said education for staff would precede enrollment, employees can opt out at any time, and the contribution is pretax.
Finance and personnel discussion noted a neighboring district’s TSA participation rate of over 70 percent after such a program and that the default level being considered is 1 percent of salary; employees could change that amount. The personnel committee had reviewed the item previously and recommended it to the full board; the board approved the recommendation 6–0.
The vote was procedural approval to proceed with the program and outreach; board members said additional employee education and a staff survey would accompany rollout steps. The board did not change existing participants’ accounts and said current participants would not be adversely affected.
