When was the last time you reviewed your retirement plan design? The BeneTrak team can work with you to determine appropriate design based on your company’s current goals. While going through your plan reviews, have you considered some of the following options?
- Stretching employer matching contributions – For employers who match employee contributions, this can be a beneficial method to increase deferral rates without increasing company expenses.
- Auto enrollment / auto deferral increase – This helps boost participation and deferral rates. A good communication strategy is key for the acceptance of automatic features.
- Adding Roth contributions – There is no employer cost involved to allow this type of deferral and it provides employees another option as they try to create a well rounded retirement plan.
- Passing administration fees on to participants – More and more employers are utilizing the ability to pass these fees on to plan participants in order to reduce company cost pressures. Because the costs are spread out among the entire participant base, the cost impact to employees is typically minimal.
*source – Plan Sponsor Council of America’s 56th Annual Survey of Profit Sharing and 401(k) Plans. October 2013