Is your retirement plan too complex and taking a lot of your time? If it’s too complicated for you, it will definitely be too difficult for your employees to understand. And if it's not easy for them to understand, then you are missing key pieces. Your retirement plan is too valuable not to put the right parts totally in place.
So what are the key pieces that your plan may be missing?
The first is this - a proven firm to handle your third-party administration, your recordkeeping, and your investment advisory services.
Are you and your staff handling your plan's administration, recordkeeping, and investment selections alone or are your current providers actually helping and improving your plan and its participation?
The second key is this—an excellent experience for your participants.
We know that only a small percentage of eligible plan participants actually take an active part in their plan. Why? Well, perhaps the plan is too complex. The harsh truth is that many participants don't understand retirement plan investments and don't understand how to invest their money. Participant education and communication are critical but they're still not enough. Even the best-designed investment plans fail if the enrollment process is too cumbersome. An easy enrollment system is one of the keys to a successful plan.
The third piece is providing a high impact, efficient, and cost-effective plan.
While many service plan providers make this promise, there are few that actually deliver. When a cost-effective retirement plan is designed specifically for your ministry, that plan should offer investments with institutional pricing, effective online and phone service delivery, and auto features such as auto enrollment, auto increase, and qualified default investment options.
Is your plan missing any key pieces? Take action today and replace the missing pieces and improve your plan.