According to the Pension Research Council, fewer women than men have retirement accounts, and plan sponsors across the country are taking notice and action. Recognizing that thriving businesses focus on recruiting and retaining a diversity of talented workers, employers are reviewing benefit plans and making changes.
Using Data To Do Good
Research from the Massachusetts Institute of Technology (MIT) AgeLab and Transamerica underscores the importance of a comprehensive and updated approach to providing all employees with holistic financial advice and educational services:
“What our data shows, and what we are seeing in the marketplace across generations, is that the way we approach our lives and the way we work is changing. People want flexibility and choice in all parts of their life, both at work and home,” said Phil Eckman, president of Workplace Solutions at Transamerica….“Employees are eager to live their best lives. And employers have a powerful opportunity in this new world of work to establish values that focus on the whole person and invest in solutions that support employees’ mental, physical, and financial health.”
Plan Sponsor reports that one workplace shift in progress is increased recognition by employers that “historically, women have lived longer and saved less, due to lower earnings and a higher rate of leaving the workforce for caregiving responsibilities, than men…” To address this gap, exemplary plan sponsors are carefully reviewing benefit offerings and implementing plan design changes: “With an eye toward boosting equitable access to benefits, they have adjusted employee compensation, added mental health benefits, used targeted communications and maintained affordable employee medical care for workers.” By carefully mining plan data, sponsors are able to make better decisions because they can discern how “every employee benefit offered affects another, because retirement contributions, medical bills, credit card debt, student loan debt repayments and wellness programming all, ultimately, are financial concerns.” Jonathan Price of Segal notes that with greater understanding of the interests and worries of employees, employers will be more successful with retirement and other benefit plan services:
“If an employer provides a financial wellness solution that includes some kind of data loop that brings back to the employer [and] the vendor anonymized information about their population that gives them an insight as to what’s most important—what are their biggest concerns, priorities, as well as how do they process financial information [and] where are their anxieties?—that empowers and allows the employer to be much more specific and targeted in their solutions….”
Of course, the ability to recruit and retain a diversity of employees is not merely a benevolent goal for business owners. As Mark Smrecek reminds plan sponsors: “Diverse workforces and greater equitability, including more access to retirement, health and wellness and mental health benefits, improve the long-term viability of businesses….”
Looking Out For Everyone?
Plan sponsors across the country are doing the important work of encouraging all employees to understand more about their finances and save for retirement. The wisest plan sponsors are also taking a few minutes to look out for themselves–by ensuring they are protected in the event of ERISA violations and fiduciary breach claims. With litigation and regulatory actions on the rise, no plan sponsor wants to personally pay for an ERISA defense attorney at the cost of $600—per hour. At Colonial, a whole year of fiduciary liability insurance is less than a few dollars a day, and we even include Cyber Liability coverage to protect the business and retirement plan in the event of a cyber breach. When it comes to ERISA, it’s best to be proactive: choose your affordable plan sponsor protection package here in minutes.
Armed with Colonial’s liability coverage, if you face claims of alleged or actual breaches of duty in connection with the employee retirement plan, you’ll be protected with defense costs and penalty limits up to $1,000,000. Uniquely, Colonial even includes Cyber Liability Insurance (for the plan and the business), locks in multi-year rates and offers installation payments. Conveniently, our Fiduciary With Cyber liability package is now available with a one year commitment. Protect yourself and your business, for a few dollars a day, now:
Pension Plan Professional?
We’re here for your plan sponsor clients—and we are ready to protect you too. From Errors and Omissions Insurance to Fiduciary Liability Insurance, Employment Practices Liability Insurance–and more, we’re HERE with the coverages pension professionals need to keep the business going—and growing. Insurance for Pension Professionals Right Here.
Colonial Surety Company is rated “A Excellent” by A.M. Best Company, U.S. Treasury listed and in business all across the country. Serving customers since 1930, we are the trusted source for the pension industry to secure legally required ERISA bonds, fiduciary liability insurance and cyber-liability insurance. We help safeguard plan sponsors, pension professionals and financial advisors — and keep their businesses compliant — with pain-free, efficient, and friendly service every time.