BofA to Freeze Pension Fund

As more and more companies from a pension plan to a 401(k) plan exclusively the quality in a 401(k) must be improved. The current model of the 401(k) is that of a supplement to a pension plan. This must change to ensure Americans will be able to successfully retire. Most business owners are far too busy running their comapny with little time to manage a retirement plan for employees and themselves. This is why most should hire a professional fiduciary.
Pension

According to news reports, employees will keep the pension benefits they have earned to date; however, workers will no longer accumulate new benefits into the fund.The company is moving to a 401(k) retirement plan for most of its employees. The company currently matches contributions of eligible workers up to 5% in the 401(k) plan; however, starting on July 1, the company will start contributing funds into workers’ 401(k) plans, regardless of whether they contribute to the plan. The company will contribute 2% to 3% of a worker’s salary into the 401(k) plan.

This is additional evidence that the 401(k) plan is no longer a supplement to a pension plan but rather the sole source of retirement for most Americans.

Please comment or call to discuss how this will affect you and your company retirement plan.

  • The Difference an Adviser Can Make (401kplanadvisors.com)
  • Benchmarking: The Key to a 401k Plan Sponsor’s Fiduciary Compliance Review (401kplanadvisors.com)
  • How to determine if a cash balance pension plan is right for your company (401kplanadvisors.com)
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