What are the district benefits of educating my employees about saving for retirement?
• Employee education fulfills the IRS requirements of “universal availability” and “meaningful notice”. Universal availability, part of the new regulations, means that if you offer the opportunity to make salary deferrals to one employee, you must offer that opportunity to all employees. Some exceptions apply. “Meaningful notice” is discussed above. • Teaching employees about the importance of saving for retirement will likely increase participation, thereby enriching your benefit package. Historically, 403(b)s have lower participation rates than 401(k)s. One way to increase participation is through employee communication.
Related Questions
- Our district recently negotiated a settlement with one of our employees and we need to know if retirement contributions should be deducted from the settlement payment?
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- What are the district benefits of educating my employees about saving for retirement?
