It all starts with the
WHY of your plan

Why did you establish a 401(k) for your company?

The 401(k) Why?

You—or your company—spend a lot of money on the company’s retirement plan. This includes matching and/or profit sharing contributions, employee deferrals, recordkeeping fees, investment management fees, advisory fees and possibly an audit fee In addition, your staff has to devote valuable time managing the plan and helping participants. Are you receiving value in return for all of these dollars spent? If you have a properly designed 401(k) plan, the answer to that question will be a resounding “Yes!”

Shouldn’t your 401(k) plan help you attract, hire, and retain the right employees thus adding to your bottom line and reducing the cost of employee turnover? Should it not empower your employees to achieve a timely retirement that is good for them as well as your company?

Is this not why you put a 401(k) plan in place for your company?  Is the answer not  to benefit your employees and to improve your company’s profitability!?

The real question today is how is your plan working to further your company’s mission?

The Problems: Savings Crisis and Your Bottom Line

America is in the midst of a savings crisis. We are one of the richest countries in the world, yet over 60 percent of Americans do not have enough money put away to handle a $1,000 emergency.  According to the Employee Benefit Research Institute, only 21 percent are now very confident they will have enough money to live comfortably throughout their retirement years. This exacts a high toll on companies across the board.

First, businesses need older employees to retire thus opening new positions and reducing costs. Senior employees are usually paid more than their younger counterparts. Additionally, older employees’ periodic raises are typically higher, calculated off a greater base salary than newer staff. Insurance for older employees can add significantly to a company’s expenses. Not only do the premiums cost more, the claims filed by such employees are often larger and ultimately contribute to higher insurance premiums for the entire staff. Increasingly, we find many elder employees to be less productive than younger ones. (If you would like to see a financial analysis of this on your specific company send an email to [email protected]).

But the savings crisis isn’t just about retirement. In working with participants we have learned most employees immediate financial attention is not on saving for retirement but rather on

  • Not living paycheck to paycheck
    • Getting out of credit card debt.
    • Taking care of their parents.
    • Educating their children.
    • Buying a home

These very real needs create added stress for your employees often resulting in them being significantly disengaged from their job, decreasing overall productivity for your company and increasing turnover.

Increasingly, workers are changing jobs thinking that earning more is the solution to their future financial stability. Feeling desperate employees continually look for ways to alleviate their worry. We have seen employees change jobs and give up quality benefit programs for as little as a fifty-cent-per-hour increase. This turnover doesn’t really solve their problem and it costs your company money.

What ERISA Requires

One of the most dangerous things we’ve discovered in working with new plan sponsors is how little they actually know about their legal responsibilities. ERISA mandates that anyone in your company who makes any decisions related to the operation of your 401(k) plan is considered a fiduciary and thus, in the event of a successful action by a disgruntled employee, can be held personally liable for the choices he or she makes.

We are well aware that managing your fiduciary responsibilities is a complex endeavor and a huge responsibility. Our innovative and thorough process takes much of that concern off your shoulders. We then add the tools and best practices you need to confidently manage the remainder.

What Transform401(k) Offers You

We believe a well designed and managed 401(k) plan design offers employers a great opportunity to make a difference in their employees’ financial futures and impact their company’s profitability at the same time. We believe the two go hand in hand. The key ingredients we strive to bring are

  • Plan features designed to help produce specific outcomes
  • Employees empowered to retire confidently
  • Overall excellence pursued through comprehensive plan governance support
  • We know cost is always an issue. Our goal is to help you reduce costs.

If this seems the most sensible way to have your plan managed, we welcome the opportunity to have a no obligation conversation with you. Fill out the form below, email us, or call us at 469-941-6059.

Welcome to Transform401(k) from our Managing Partner, Mike Romig, AIF®

Why Transform401(k)

Transform401(k) is here to help you pursue improved profitability by working toward optimizing your company’s 401(k) plan. Our aim is to improve recruiting, increase retention and empower your employees to retire successfully, click here to know why

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