A blog by Rich Rausser, CFC, QPA, QKA, Senior Vice President, Pentegra Retirement Services – July 20, 2016 Taking a holistic approach to designing any client’s retirement plan is a goal well worth trying to attain. This is especially true when it comes to credit…
Aligning Plan Design with Client Goals Most of us live in homes that were not custom-designed for us. We adapt to them rather than expect them to be optimized to how we like to live. Most retirement plans are sold the same way. Companies buy…
…have. Let’s talk about two of them – namely, things we can address in plan design and things we can communicate to help set expectations. In plan design, our first goal is participation. To that end, auto-enrollment has been proven to be effective in getting…
…on Cash Balance plan design best practices, and how to get from simple contribution design to complex contribution design – with and without a calculator – with our back of the napkin approach. We’ll talk strategies on which clients might be the best fit for…
…deducted are not included in the employee’s taxable wages or subject to income tax withholding requirements. However, 401(k) and 403(b) plans that accept designated Roth contributions can specify that the automatic contributions will be designated Roth contributions, which means they are deducted from an employee’s…
…ARE THE DIFFERENT TYPES OF PLAN DESIGNS FOR CROSS TESTED PLANS? Typical Cross Tested plan designs include New Comparability Plans and Age-Weighted plans. With both types of plans, if non-discrimination requirements are met, a larger share of the employer’s contribution may be made on behalf…
…than April 30, 2016. The restatement of the plan is also an opportune time to consider implementing progressive plan features—automatic features—that can help drive positive participant behavior to drive more successful outcomes. Current best practices in 401(k) plan design include adding automatic features to help…
…lump sum payment, benefits are also available as an annuity. COST CONTROL – Cash balance plans tend to reduce pension costs because benefit targets are based on current salary rather than projected final average salary. In this sense, cash balance plans are similar in design…
…some TPAs go the extra mile to help you better serve your clients with additional value-added services and capabilities that could help mitigate fiduciary risk, provide plan design consulting services, and offer other ways that can ultimately help you grow your practice. Longevity. While it…
The new fee disclosure rules are designed to make the process easier for both plan sponsors and participants to compare plan costs and fees, and whether or not these fees represent good value for the services being provided. WHAT TYPES OF PLANS DO THE DISCLOSURE…
…the certain non-discrimination requirements that, as a general rule, 401(k) plans must satisfy. When a 401(k) plan adopts one of the alternative methods, it is known as a safe harbor plan. Adopting a same harbor 401(k) plan design allows an employer to avoid discrimination testing…
…are in compliance, evaluating plan fees, evaluating overall plan design in terms of peer and competitive considerations, benefits strategy and coordination across all plans, and also, in terms of your retirement programs’ ability to help participants enough to attain retirement security. WHAT FACTORS SHOULD BE…