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A Quality Retirement Plan is a Top Priority for Employees

May 3, 2022

In competing for talent, it’s important to understand what benefits employees want. A quality retirement plan like the SBAM Pooled Employer Retirement Plan is near the top of the list. In fact:

  • 91% of workers value a 401k or similar retirement plan as an important benefit.
  • 84% of workers say retirement benefits offered by a prospective employer will be a major factor in their decision whether to accept.
  • 71% of Millennial workers say they are likely to switch employers for a nearly identical job with a similar employer that offered a “retirement plan or a better retirement plan.”

Do your potential new hires view your existing program as a compelling reason to join your organization? What about your tenured staff?

Here’s what employees want from their plan:

  • 30% want a better explanation of whether they are on course to retire.
  • 25% want more one-on-one, personalized education.
  • 25% want more online educational tools.

Besides attracting and retaining talent, an effective retirement plan can help create a retirement-ready workforce and lead to a more engaged, productive team. The SBAM Pooled Employer Retirement Plan is a 401(k) solution designed to reduce fiduciary risk and decrease your administrative burden — and it may even reduce overall plan costs.

Learn more about SBAM’s Pooled Employer Retirement Plan and how it could benefit your organization or talk with us at (800) 362-5461.


Sources:

1 “Living in the COVID-19 Pandemic: The Health, Finances, and Retirement Prospects of Four Generations,” nonprofit Transamerica Center for Retirement Studies, August 2021.

2 “Retirement Security Amid COVID-19: The Outlook of Three Generations,” nonprofit Transamerica Center for Retirement Studies, May 2020

3 “2021 Retirement Confidence Survey,” Employee Benefit Research Institute, 2021

Before adopting any plan, you should carefully consider all of the benefits, risks, and costs associated with a plan. Information regarding retirement plans is general and is not intended as legal or tax advice. Retirement plans are complex, and the federal and state laws or regulations on which they are based vary for each type of plan and are subject to change. In addition, some products, investment vehicles, and services may not be available or appropriate in all workplace retirement plans. Plan sponsors and plan administrators may wish to seek the advice of legal counsel or a tax professional to address their specific situations.

For a multiple employer plan (MEP): While a multiple employer plan (MEP) arrangement offers adopting employers the ability to delegate fiduciary functions to the MEP provider, employers should be aware that they still retain the fiduciary responsibility for selecting and monitoring the MEP provider. Because a MEP is treated as a single plan, a violation of the qualification rules by an adopting employer could affect the qualified status of the plan as a whole. In order to be treated as a single plan under the qualification rules, the adopting employers of a MEP must share a commonality — a connection among the adopting employers such as a trade or professional organization.

For a pooled employer plan (PEP): Pooled employer plans (PEPs) are a new type of multiple employer plan for which the Department of Labor (DOL) and IRS guidance is still pending in a number of areas. An employer participating in a PEP retains certain fiduciary responsibilities, including responsibility for retaining and monitoring the 3(16) plan administrator, for determining the reasonableness of its fees, and for periodically reviewing the plan as a whole. Transamerica does not act as a 3(16) plan fiduciary. Nothing in this communication should be construed as the commencement of operations by a pooled plan provider (“PPP”) prior to registration as a PPP.

For Group Plan Solution and Retirement Plan Exchange: The GPS or the Exchange is not a multiple employer plan (MEP). Unlike a MEP, certain plan qualification and ERISA requirements are applied at the individual plan level. An employer participating in the plan retains certain fiduciary responsibilities, including responsibility for retaining and monitoring the 3(16) plan administrator, for determining the reasonableness of its fees, and for periodically reviewing the plan as a whole. Transamerica does not act as a 3(16) plan fiduciary.

Securities offered through Transamerica Investors Securities Corporation (TISC), member FINRA, 440 Mamaroneck Avenue, Harrison, NY 10528. All Transamerica companies identified are affiliated, but are not affiliated with any other organization referenced. Logos and trademarks are the intellectual property of their respective owners.

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