…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…
…retirement income for many people today. Plan sponsors have a growing sense of responsibility for employees’ overall financial wellness. Plan design decisions are the key driver in helping people save successfully. Retirement readiness starts with progressive plan design Ensuring successful participant outcomes begins with progressive…
…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…
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…
…must receive no direct or indirect compensation for maintaining the plan other than a reasonable reimbursement of expenses incurred to operate the plan. WHY THE CONFUSION? The 401(a)/403(b) plan design is common in the not-for-profit market. When a not-for-profit employer has a 403(b) and a…
…have the plan design conversation? Cash Balance 101. Our virtual classroom is open and we want to provide you with the knowledge you need! Core Curriculum Plan Design best practices Strategic selection – which clients may be the best fit and why Talking points for…
…least. And it would be ideal to have a proactive, comprehensive solution that would empower both plan sponsors to design plans that are conducive to producing successful retirement outcomes, and participants with accurate retirement income projections and the clear means to achieve them. Pentegra’s SmartPathTM…
…in the future. Things like providing additional employee education regarding the value of saving for retirement, introducing plan design features such as adding a 401(k) safe harbor, adding auto escalation of contributions, auto enrollment, or enhancing the matching formula can improve a plan’s test results….
…how difficult it is for many people to establish a plan to make it happen. There isn’t a silver bullet to financial wellness, but it’s important to recognize that part of good retirement plan design is ensuring that the people for whom it’s designed can…
…plan design flexibility. These plans can be especially helpful if clients are close to retirement age, but they’re not for everyone. Unlike profit-sharing plans with discretionary contributions, Cash Balance plans do require a mandatory annual contribution. That tends to favor professionals with an income that’s…