Attributes of a Successful Retirement Plan Program

Attributes of a Successful Retirement Plan Program

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Retirement plans can be a great benefit for drawing and retaining employees. However, is your retirement plan deemed attractive to current and potential employees? How does it compare to other employers you consider peers? An attractive DC plan does not happen by chance – it requires thoughtful plan design. If you craft a plan prudently and with their retirement in sight, it will be beneficial to both your company and your participants. We have helped many plan sponsors with their plan design and observed the main attributes that make a successful retirement plan program.

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Why Auto-Enrollment Matters for Plan Sponsors

Why Auto-Enrollment Matters for Plan Sponsors

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In 2006, Congress passed the Pension Protection Act, which authorized employers to enroll workers in retirement plans automatically. According to the IRS, automatic enrollment is the ability of employers to contribute a certain percentage or amount from an eligible employee’s paycheck into an employee’s retirement account. Employees retain the right to opt out of the program or change the deducted amount. Auto enrollment for defined contribution plans can increase saving rates. It also serves to overcome an employee’s inertia, as many workers find enrolling to be time-consuming and overwhelming. The employer sets the initial level of deduction, helping employees to save more.

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The Increasing Growth of Fiduciary Advisors to Plan Sponsors

The Increasing Growth of Fiduciary Advisors to Plan Sponsors

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Employer-based retirement plans are a major benefit to employees, especially in today’s job economy where 401(k) or 403(b) plans make up the majority of employee retirement savings. A 2018 survey from the Plan Sponsor Council of America found that 70 percent of companies retain an independent retirement plan advisor, which was 66.8% in the prior year. There are several factors that lead to this growth, such as overseeing the delivery of investment advice to participants by way of registered investment advisors (30.8 percent), certified financial planners (28.8 percent) or third-party web-based providers (20.2 percent). Let’s look at why companies hire plan advisors, why they should care, and tips to find the right advisor.

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Should Retirement Plan Providers Implement Automatic Enrollment?

Should Retirement Plan Sponsors Implement Automatic Enrollment?

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Use of automatic enrollment in defined contribution plans has grown considerably in recent years as plan sponsors seek to boost employees’ participation and retirement savings. Concerned about the fact that only 32 percent of workers nationally who have access to a 401(k) or 403(b) plan participate, employers are moving to automatic enrollment out of a sense of responsibility.

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Why Your Retirement Consultant Matters

Why Your Retirement Consultant Matters

Posted on by Mark OlsenLeave a comment

The top financial concern for most Americans is not having enough money for retirement. This is a real worry for about ⅔ of workers. As a retirement plan sponsor, you can help combat those fears. Sponsoring a retirement plan is a big responsibility. Are you up to the task? Do you feel that you have the knowledge and expertise to design and run a plan that will maximize participant savings? Most plan sponsors don’t. So they hire a retirement consultant.

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