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.
- New Guide Tells Attorneys What Banks Won’t About Small Business 401(k) Plans (prweb.com)
- Why Small Business Now Has the 401(k) Benefits Edge on Big Business (401kplanadvisors.com)
- Plan “Symptoms” that it’s time for a Review (401kplanadvisors.com)