At a glance, compliance tests assure that every retirement plan is producing a meaningful benefit to rank and file employees and that it demonstrates a level of fairness in the benefits those same employees get as compared to the benefits achieved by owners and other…
…opportunity for rank and file employees to participate while giving owners a more generous savings path. And don’t forget, the IRS provides all employees over the age of 50 the opportunity to make what are called “catch up” contributions. This might be the best named…
…other factors. So, a simple formula might allocate 3% of compensation to all eligible employees. Participants share on a pro rata basis. A company owner might ask – can we include the contributions we make to social security as a factor in our formula? The…
…save. Some may want a way to contribute a share of profits to their employees’ retirement. Some are looking to provide an incentive for employees to stay around longer. And some need a competitive retirement benefit to attract and retain top talent. If we truly…
…about how participant loans affect long term retirement outcomes. On one hand, it’s not hard to appreciate that employees may be more motivated to enroll in a plan that includes a loan feature since it provides comfort that they’ll be able to access their savings…
…to save at a high enough rate to meet real income needs later in life. An important way to help employees of company-sponsored retirement plans make real progress for themselves is to offer auto-enrollment and auto-escalation features to retirement plans. Both can positively influence retirement…
…according to the Bureau of Labor Statistics. It would also clarify the due date for single-employer pension plan minimum required contributions; that date was delayed for 2020 by CARES. In addition, while the CARES Act allows eligible retirement plans to rely on an employee’s self-certification…
The April 14 release of cybersecurity guidance for retirement plan sponsors and fiduciaries by the U.S. Department of Labor (DOL) is both momentous, and long overdue. That this is the first time that the DOL’s Employee Benefits Security Administration (EBSA) has issued such guidance speaks…
“Everybody makes mistakes – that’s why the invented erasers,” goes the old saying. And while the Internal Revenue Service (IRS) may not enjoy an image of being cheerfully understanding of errors, it recently made some significant alterations to its Employee Plans Compliance Resolution System (EPCRS)…
…be educated consumers of 3(16) fiduciary services. Running a qualified retirement plan for employees is like running a business for clients. Just as with a business, the administrative responsibilities and liabilities of operating a plan are significant. The Department of Labor (DOL) views all business…