Impactful Retirement Plan Design Features


Across the country, employers are looking for ways to help workers secure their financial futures while steering out of the pandemic and related economic disruption. Retirement planning experts suggest focusing on impactful plan design features.

Automatic Default Components

With employers across industries looking for new ways to advance the financial well-being of workers, there are lots of benefit options being explored. Experts remind us that retirement plans are in many ways “the best-developed financial wellness benefit” available. With decades of research to draw on, plan sponsors can make informed decisions about retirement plan features to improve employee participation in plans, contribution levels and age-appropriate investment choices.

The Society for Human Resource Management reports:

 Being thoughtful about plan design can dramatically improve employees’ chances of accumulating wealth and achieving a secure retirement. “What I have seen over a few decades and something that has accelerated over the past five years, is plan sponsors adopting smart plan designs that feature automatic default components in plans,” says Dave Stinnett, head of the Vanguard strategic retirement consulting team…. Stinnett…says these components include:


  • Auto-enrolling employees in plans.


  • Setting automatic payroll deductions.


  • Automatically escalating employee contributions over time.


  • Adopting automatic asset-allocation features, such as placing employees in target-date funds that feature low-cost, diversified assets and a risk profile appropriate to their age.

Disruption Creates Uncertainty

Let’s face it: retirement plan sponsors make many decisions and have a lot of responsibilities. If an uh-oh moment  comes your way, why go it alone?

Any individual involved in the management of a retirement plan can face personal exposure for breach of fiduciary duty. Even allegations of a fiduciary breach can divert attention and resources from your work—and life.  For example, if you suddenly needed an attorney with ERISA expertise, you would likely pay upwards of $500—per hour! Ouch! Avoid this possibility—and a lot of other stress—with Colonial Surety Company’s affordable Fiduciary Liability insurance.

 Available with a complete ERISA Bond Package, a whole year of Fiduciary Liability coverage is less than what you’d pay for one hour with that lawyer if a crisis hits. Plus, Colonial’s 2 and 3-year packages also include Cyber Liability coverage to protect your business and retirement plan in the event of a cyber breach.

Remember: the required ERISA bond protects the assets of the retirement plan from theft; Fiduciary Liability coverage protects you and your assets from personal liability; and, Cyber Liability coverage  can safeguard your company and plan from covered losses and expenses in the event of a cyber breach.

With Colonial, you can easily and affordably secure this complete coverage package. Step into spring with a stepped-up risk management plan for yourself, and your business.

ERISA Bond Package With Fiduciary Liability Coverage

Colonial Surety Company is rated “A Excellent” by A.M. Best Company, U.S. Treasury listed and in business all across the country.