Category: Business Retirement Plan Design

A retirement program that helps employees meet their savings goals is an important part of a comprehensive benefits package. At some point, meeting the changing needs of your employees will require you to make changes to your retirement plan offering. However, this process is much easier said than done, as there are many twists and turns along the way that businesses simply don’t anticipate when they set out to offer their employees a better plan. We’re here to save you from making the same mistakes as your peers. Read on to learn three of the most common pitfalls associated with switching retirement plans, and how your business can avoid them when rolling out your new offering. 1. Not accurately estimating your expenses The path to switching your company’s retirement plan is a complex endeavor with lots of components that can really throw you off track if you don’t plan for...

The beginning of each new year is the most popular time to make resolutions and usher in positive change in nearly every area of life–coincidentally, it’s also a perfect time to stop and take inventory of what could be improved in your employee retirement plan.  With over 51% of employees desiring a retirement plan offering from their employers, it is no secret that retirement benefits are a highly sought-after part of a comprehensive compensation package. However, 2021 data compiled by research organization Matthew Greenwald and Associates revealed that roughly three in four American employees are still worried about their post-career prospects. Topping their list of financial concerns is running out of cash (40%), followed by income loss (18%) and inability to pay for medical expenses (18%). As the retirement planning world becomes progressively more complex, workers are increasingly looking to their employers to help them navigate common obstacles; promisingly enough,...

So, you’ve worked hard to design a great retirement program for the employees at your company. Now what? Aside from the initial program set up, one of the biggest challenges business owners report facing is encouraging their employees to participate. Why does this matter? To start, contributions (both from you and your employees) are paid for with pre-tax dollars. This provides the dual-benefit of reducing your workers’ taxable income and your taxable revenue, which results in less money going to Uncle Sam at the end of each year. Furthermore, the ability of eligible employees to participate in some type of retirement savings plan is required by the IRS. Compliance with these rules is measured by a set of tests, all of which are easier to pass if employee enrollment in your plan is high. In addition to the immediate benefits to your company, retirement plan enrollment directly impacts the welfare...

ESG investing is a hot subject in the corporate retirement plan investing world right now. Attracting the attention of individual investors, fund managers, and regulatory bodies, ESG has shaken up conventional ways of looking at and evaluating plan investment strategies and generated both positive responses and criticism from many in the field. Today we’ll break down all the major things you should know. Let’s start with the basics. What are ESG investments and why are plan sponsors requesting more ESG investments for their corporate retirement plans? ESG funds are comprised of carefully-selected assets that are assessed on three categories of factors—environmental, social and (corporate) governance. These considerations help to form a more holistic view of the company and the investment. When paired with traditional stock valuation strategies, the analysis of these factors is referred to as ESG integration. Environmental: Environmental factors look at the impact to the planet of the...