Retirement Plan Blog

Employee communication plays a critical role in the success of your company’s retirement plan and corporate benefits programs. Effective communication about retirement benefits is largely the responsibility of the plan trustees and human resources (HR) department, with support from the plan’s sponsor and financial advisor.

When your most recent hires became eligible for your company’s retirement benefits, most said they didn’t plan to participate. Out of several who were on the fence, only one actually enrolled in the 401(k) plan. In addition, several employees who were participating in the plan have stopped their contributions in recent months.

Including a high-value 401(k) plan as part of your employee benefits package has a positive impact on your company and on the financial well-being of individual participants. A good way to think of the value your plan offers is to compare the level of fees the plan currently bears to the level of services and benefits it provides.

A 401(k) plan isn’t something you just set and forget. Unless your plan sponsor and trustees carefully review the plan fees each year, the costs tend to grow until they’re far too high compared to the level of service you’re receiving.