The Department of Labor (DOL) has published a final rule for the disclosure of fees by people who provide services to retirement plans that are governed by the Employee Retirement Income Security Act (ERISA). On February 3 of this year these new retirement plan fee disclosure rules were announced.
Many post-graduates have a list of their dream companies, the places they’d love to work for in those big, shiny, downtown office buildings. Less-likely to be listed are those smaller organizations whose names are not emblazoned upon a huge steel edifice in a major skyline. But these small companies are just as important to the business environment at large, and often present potential candidates with as many, if not more, perks and opportunities for growth as the big names. These smaller organizations need to highlight the advantages they offer – the stuff that oftentimes the big guys can’t bring to the table – and make use of around-the-clock networking and employee referrals to keep top talent interested in their company.
In a recent survey, over 80 percent of benefit directors indicated that their employees were not financially prepared for retirement. As well, a common woe of the American worker is whether or not Social Security benefits will exist in the coming decades. 401(k) plans are one of the most significant tools for retirement investment available to workers. Participating in these employer-sponsored plans may seem like an option available only to employees of large organizations. 2006’s Pension Protection Act created several benefits for small businesses wishing to implement 401(k) programs for their employees. There are many ways in which offering an employer-sponsored 401(k) can benefit the owner, or small business, itself.
Participation in employer-sponsored 401(k) and individual retirement accounts (IRAs) is of great interest to Americans seeking to secure funds for their futures. These plans bring mainstream investment opportunities to individuals who might not otherwise take part in investing. A certain degree of protection is naturally inherent in these types of plans; the best interest of the participant is usually the focus, rather than the maximization of profit for the investment firm itself. On October 24, 2011, the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) released final regulations that further protect workers taking part in employer-offered 401(k) and IRA plans.
The Essex Companies. All Rights Reserved
