During meetings with retirement (401k) plan sponsors (employers) there has been a response of apathy when we discuss the high plan fees and fiduciary risks in their plans. Sponsoring a retirement plan for your employees is a great responsibility to your employees and their beneficiaries. The future of your employees is in your hands and as well as your own future. Your employees look to you for guidance in this and many other areas. They listen to you.
Retirement plan sponsors should pay more attention to their plan and realize that one of your fiduciary duties is to make decisions regarding the plan for the ‘exclusive purpose of benefiting plan participants and their beneficiaries’. This vital duty can be easily be managed by working with experienced professionals to provide a real benefit to you and your employees. There is growing evidence that employees will look at employee benefits when deciding to remain employed or seeking new opportunities. A properly managed retirement plan, 401k, can be seen as a deciding factor.
The ability for employers to attract and retain talented employees will be determined by the value of your retirement plan. It is not about offering the top performing, five star funds, rather it is providing a prudent, low cost menu of funds. One step further would include providing professionally managed portfolios, based on selected criteria to allow each employee to retire successfully. Please comment or contact me so we can talk more about how this applies to your business…
- Proposed Changes to 401k Plans: Know What is at Stake! (prweb.com)
- 401(k) Match Motivates Retirement Saving (money.usnews.com)