One of the biggest concerns of Plan Sponsors is the fear of low-plan participation. Imagine spending your money, time, and effort in setting up a new plan for your employees...and they don’t understand or take little notice of the plan. Maybe you’ve already experienced this!
Addressing these issues head on allows you to overcome your Plan Participants’ concerns and allows their plans to flourish. As you encourage and support your staff, it is also important to guide them in understanding retirement planning from a Christian perspective. Help them to recognize that retirement is not the end, but the beginning—a future stage of life when ministry starts or renews and a time when money should not be a barrier. The world calls this “retirement” —we call it “Future-Funded Ministry™,"—the financial freedom to serve God in your later years. This exciting new way of talking about retirement allows you to lead your organization’s retirement plan process with vision and purpose.
We know only a small percentage of eligible Plan Participants take an active role in their plan. The harsh truth is many Participants don’t understand retirement plan investments and how to invest their money. At Envoy Financial, we’ve given you the necessary material to effectively prepare you as you lead your Plan Participants towards their own Future-Funded Ministries.
The following are essential steps towards effective employee participation:
- Plan Administrator Engagement - It’s important for your Plan Administrator to be engaged and knowledgeable when working with your Participants. The Plan Administrator is responsible for the coordination of all activities and vendor relationships. We provide a Plan Administrator’s Guide that directs the Plan Administrator to effective Participant engagement.
- Retirement Plan Oversight Committee Engagement - It’s also important for your Retirement Plan Oversight Committee to be engaged, knowledgeable, and fully functional. The Committee is a team of employees established to oversee your plan. Envoy Financial provides a Retirement Plan Oversight Committee Guide to help your organization effectively implement and maintain the oversight team.
- Proper Communication – Envoy Financial provides your organization with a Welcome Letter,Personal Retirement Guide, and Summary Plan Description to equip you with the necessary items to educate your Participants.
- Resources and Tools – Envoy Financial provides you with a Smart Plan Interactive Guide,Personal Retirement Guide, Summary Plan Description, Fund Fact Sheets, Morningstar Funds Analysis, and Fund Prospectus. These are all vital resources and tools that help you provide your Plan Participants with all the necessary resources to be able to effectively interact in and understand their plans.
- Education Program - Participants don’t want to rack their brains trying to understand the process of investing. For them, simple is best. That’s why it’s important to provide easy, straightforward education. We’ve implemented Educate Now, an education program that provides all the necessary material to help them understand their plans.
- Employer Matching Contributions - In an Employer Matching Contribution Program, a Participant will only receive a contribution from the employer if the Participant makes a contribution on their own. Providing an employer matching contribution is a huge perk to your Plan Participants and will drive their action to participate in your retirement plan.
- Monitor the Outcomes – We provide you with a Quarterly Retirement Plan Oversight Executive Report that will monitor your employee participation. It's important to read these reports so that you can understand your organization's employee participation.
By actively reading and understanding the material we provide, you will be able to effectively drive the participation of your employees!