Are 401k Plan Goals Really an Employer Responsibility?

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Many companies see their 401k plan as a burden. It can easily become a valuable tool to attract and retain top talent. Proper plan design makes a huge difference to plan success. These services can and in most cases should be outsourced to professionals.

Are 401k Plan Goals Really an Employer Responsibility?

Some employers do not believe it is their responsibility to ensure their employees’ well-being in retirement. Many adopt the philosophy that “we provide the 401k plan, and [in most cases] a matching contribution, and we provide for plan management and incur fiduciary responsibilities….isn’t that sufficient?”

However, a significant number of plan sponsors are concerned about their employees’ retirement readiness. These are the sponsors who are interested in considering ways to improve the successful outcomes of their plans.

Some of the potential solutions require a commitment of time, effort, and additional cost. But few (if any) of the solutions require costs equivalent to those incurred if employers still offered defined benefit plans. In other words, an employer need not incur all the time, effort, cost, and complexity of a defined benefit plan, but neither need they offer a less-than-impactful 401k plan. For sponsors desiring more inspired outcomes, solutions exist within the 401k and 403b world.

For companies to compete in the future they will need skilled employees. A properly managed qualified retirement plan can help attract and retain top talent.

Please comment or call to discuss how this can help your company compete.

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