It’s important to remember that the 401k MEP is just a vehicle. Whether they truly meet the objective of employees saving more for retirement and doing so effectively and efficiently comes down to execution.
Education
Perhaps, just as plan sponsors have developed onboarding programs for new hires when it comes to saving for retirement, maybe they should add “unboarding” programs as a bookend for those nearing retirement.
It appears all but certain the floodgates will soon open wide, unleashing a torrent of trade association sponsored 401k MEPs. If you’re looking for the trigger that will open those floodgates, here’s what you should be paying attention to.
Not being able to easily monitor how former employees apply these tools, however, can increase the fiduciary liability of plan sponsors.
You can’t do anything about it if you don’t know what the “it” is you need to do something about. It is therefore important for plan sponsors to devote resources that increase employee awareness.
If plan sponsors can train their employees to use these same tactics for their retirement, they’ll be more likely to practice those tactics at work. And that’s good for business.
The bottom-line is employees may be setting themselves up not only for failure, but for a costly failure. This is why it’s vitally important for employees to understand more than just the simple objective and class of the mutual funds they own.
401k plan sponsors have a renewed focus on the three F-words of offering employee retirement benefits: Fiduciary, Fees, and Financial Wellness. Here’s how plan sponsors answer questions related to each of these three F-words.
Here’s quick read with a surprise reveal. Can you find it?
There’s always something new under the sun, and that means there’s always educational topics 401k plan sponsors should be asking about but aren’t. Hopefully, this list will inspire more curiosity and lead to better informed employees.
