Plan Design
Over the past few years, the retirement plan landscape has evolved
dramatically. This is largely due to the passage of the Economic Growth &
Tax Relief Reconciliation Act of 2001 (EGTRRA) and the Pension Protection
Act of 2006. Defined Benefit plans, commonly known as pension plans, are
becoming rare and Money Purchase plans are practically extinct. Now more
than ever, it's important to hire an expert in the area of retirement
plans to keep up with these changes and industry trends.
WWK currently services over 40 corporate plans ranging in size from 2 to
1900 employees. We take the time with each client to determine their true
goals of offering a plan. Whether the goal is simply to offer an employee
benefit, or to maximize key employees' deferrals, we illustrate the best
possible options available to the plan sponsor, assisting them in weighing
the pros and cons.
The field of retirement plans is extremely complex. There are a variety
of plans including:
- SEP
- SAR-SEP
- SIMPLE
- 401(k)
- 403(b)
- 457
- Money Purchase
- Straight Profit Sharing
- Cross Tested Profit Sharing
- Age-Weighted
- New Comparability
- Super Comparability
- Straight Defined Benefit
- Cash Balance Defined Benefit
- Single 401(k)
- Single Defined Benefit
In addition, it is possible to combine some, but not all, of the above.
Company matches, safe harbor contributions, discrimination testing,
employee loans and hardship withdrawals complicate matters even more. It
is crucial to implement the right strategy for each corporation in order
to efficiently accomplish the client's objectives. It's additionally
important to align the plan with the appropriate administrator. WWK works
directly with the country's most respected administrators to match the
necessary capabilities with the plan, while keeping costs in check.
Employee Education
Group Presentations
A retirement plan sponsor's biggest challenge is to provide their
employees with extensive education. Through semi-annual or annual
enrollment meetings, WWK representatives conduct group presentations with
the employees. We review the basics of investing, including defining
stocks, bonds, and mutual funds. We also discuss, in depth, the
importance of diversification, international investing, market volatility,
and realistic expectations. We explain the importance of pre-tax
investing, the advantages of saving today instead of tomorrow, and the
benefits of employer sponsored programs. We tailor our group
presentations and enrollment meetings to accommodate the varying degrees
of investment experience among our clientele's employee base.
Individual Consultations
In addition to the group meetings, we provide one-on-one consultations to
employees who may want personalized information. With the use of laptop
computers, we can produce personalized hypothetical illustrations on site.
Although part performance is not a guarantee of future results, we can
estimate the amount of contributions necessary to reach retirement. These hypothetical illustrations can also estimate the amount
of contributions necessary to reach retirement, using historical
assumptions and personal goals. Furthermore, we often take the time to
meet with employees outside of normal business hours throughout the year.
Our goal is to ensure that our clients understand how their money is being
invested.
Educational Materials
We provide employees with comprehensive educational materials. We include
easy to read brochures that discuss basic market information and details
on the funds offered. These brochures use hypothetical examples along
with charts and graphs. We may also use the technology of PowerPoint,
multi-media, and video presentations.
Fiduciary Assistance
Although there is no way in which to eliminate a plan sponsor's fiduciary
duties to the plan, WWK assists the plan sponsors to fulfill these
obligations and reduce their liability. These services include:
- Drafting an Investment Policy Statement
- Monitor & Document Investment Performance
- Monitor & Document Ongoing Costs
- Relevant News Articles
- Updating plan sponsors on legislative changes
- Enrollment Meetings
- Annual Overall Review
- Acting as an Independent Intermediary between the Trustee, investment
managers, administrators and the retirement committee of your firm.
Website
WWKInvestments.com is a convenient website making it easier for plan
sponsors and their participants to access information and necessary
forms.
Plan Sponsors & Participants will find:
- Account values & history
- Ability to make changes
- Current Stock Market activity
- Distribution Requests
- Financial Calculators
- Plan History & Financial Data (sponsor only)
- Employer-sponsored 529 information
|
