Despite the fact that women tend to live longer, female workers typically have lower retirement account balances than their male counterparts. Many factors may contribute to this disparity, including lower earnings, greater part-time work and time off for child and eldercare, lower levels of financial literacy and lower risk/lower return investment choices. As a result, … Continue reading Closing the Retirement Gender Gap: How Retirement Plan Advisors Can Help
It may be advantageous for a plan sponsor to consider adopting a traditional safe harbor design for their retirement plan. Adopting a safe harbor retirement plan design permits an employer to essentially avoid discrimination testing (the testing is deemed met). Remember, this testing limits highly compensated employees’ contributions based upon non-highly compensated employees’ contributions. By … Continue reading Considering a Traditional Safe Harbor Retirement Plan?
A partial plan termination is presumed by the IRS to occur when 20 percent or more of a company’s employees are no longer eligible to participate in the plan in a determined span of time (typically one plan year, but it can be other spans of time based on facts and circumstances). Routine turnover during … Continue reading Is Your Turnover Rate Routine? What You Need to Know About Partial Plan Terminations
Managing uncashed retirement checks may be considered a nuisance by plan administrators. Nevertheless, the employer still has fiduciary responsibility when a former employee fails to cash their distribution. Search efforts to locate a missing plan participant consume time and money and may fail to locate the participant. Likewise, going through the process of turning over … Continue reading Tips for Preventing Uncashed Retirement Checks
Many companies are outsourcing more and more activities, mainly because outsourcing can provide cost savings and increase productivity. Outsourcing allows companies to focus more on their core businesses, rather than spending time on areas outside their expertise. For retirement plan sponsors, outsourcing services makes sense for these reasons as well as others. Reduced Risks As … Continue reading Why CFOs Should Consider Partnering with a Retirement Plan Advisor
Many organizations face the problem of increasing employee participation in their retirement plans. Participation is crucial to the success of the plan, and it improves employee retention and overall job satisfaction - but how can plan sponsors improve participation rates? Design: Your plan needs to meet the needs of your employees and your company. Employee … Continue reading Improve your Retirement Plan by Encouraging Employees to Join
As the unemployment rate has dropped, hiring has grown increasingly competitive - especially for businesses with highly-specialized positions. It’s important to understand how retirement matches factor into the hiring process and how they can financially benefit your company. Here are a few reasons why offering a retirement match helps your business. Competitive Hiring If you … Continue reading The Benefits of Matching Retirement Contributions
Many retirement plans today provide automatic enrollment for employees, meaning the plan sponsor initiates enrollment into the retirement plan on behalf of the employee. One common question plan sponsors come across is whether their enrollment kit satisfies the annual automatic enrollment notice requirement. At first glance, it may seem that enrollment kits contain all the … Continue reading The More You Know: Automatic Enrollment Notices
Many companies are outsourcing more and more activities, mainly because outsourcing can provide cost savings and increase productivity. Outsourcing allows companies to focus more on their core businesses, rather than spending time on areas outside their expertise. For retirement plan sponsors, outsourcing services makes sense for these reasons as well as others. Reduced Risks. As … Continue reading The Top Three Reasons to Outsource Fiduciary Services
Looking to reduce your fiduciary risk as a plan sponsor? A little outside help can yield big reductions in risk, provide the best for the people on your company’s payroll, and help you feel good about your qualified retirement plan. Remember though, what’s good for the plan participants isn’t always best for the company - … Continue reading 3(38) or 3(21): Which Fiduciary Service is Right for You?