Maybe some of the employees at your small business are restless and resigning—as are millions across the country. Maybe you are bringing in new talent—as you grow your business and attract workers looking for increased opportunity. In either case, it is wise for plan sponsors to educate employees about making the best use of retirement plans.
Avoid Problems Later
Experts encourage retirement plan sponsors to facilitate the portability of retirement accounts. Whether making it easy for outgoing employees to continue accumulating savings or for new employees to build on their previous efforts, plan sponsors who communicate with workers about retirement account options ultimately reap rewards. Employees who have less financial stress do better at work—and of course that ripple demonstrably benefits the bottom line of our businesses. Additionally, proactively supporting plan participants to make choices about their accounts when shifting jobs curtails the challenges—and regulatory risks— involved in locating missing participants down the road.
In just one recent month, April, about 4 million workers quit their jobs, prompting labor experts to begin talking about “The Great Resignation.” It is anticipated that the disruption will create dangerous retirement plan leakage unless plan sponsors proactively facilitate the portability of accounts. Plan Sponsor explains:
Plan leakage occurs when employees leave an employer-sponsored plan and fail to roll the account over to a new employer’s retirement plan or to an individual retirement account (IRA). When an individual fails to roll his retirement account over, he misses out on accumulating retirement savings, and, thus, a larger sum of money for his retirement income.
As more workers leave their jobs—some without another role lined up—industry observers expert more plan leakage will occur. Josh Sailar, a partner at Blue Zone Wealth Advisors, tells PLANSPONSOR that there’s a need for enhanced education when it comes to savings at the participant level. “There’s always going to be a need for continued education, especially with a diverse set of IRA plans available,” he says.
Obtain Fiduciary Liability Coverage
Given the many—and expanding— responsibilities of being a plan sponsor, it’s important to be protected with fiduciary liability coverage. Even the allegation of a breach of your fiduciary duties can be costly for you and your business. There’s no need to go it alone. Colonial Surety’s fiduciary liability insurance covers your business—and you as the fiduciary—against claims of alleged or actual breaches of duty in connection with the employee retirement plan. Annual premiums total less then just an hour or two with an expert ERISA attorney if a lawsuit lands in your in-box. Colonial’s comprehensive ERISA bond packages offer plan sponsors up to $1,000,000 of fiduciary liability insurance. Choose Your Plan Sponsor Protection Package Here
Shift Happens: Get Help
Disruption in response to the pandemic will continue to reverberate through our businesses. For how long, no one knows. Likewise, a steady flow of potential new regulations impacting retirement plans will continue winding their way through government. As a plan sponsor in the midst of the shifts, don’t neglect essentials. For example, you are still required to have a current ERISA Bond to protect the assets of the retirement plan from theft. Don’t stop there, though: the ERISA bond required for the retirement plan does not cover you—the plan sponsor— as the fiduciary. Can you picture what even the allegation of a fiduciary breach would take from you? Money, time, reputation: without protection, all are at-risk.
Why go it alone? Let’s get you covered, comprehensively and affordably—that’s what plan sponsors across the country rely on from Colonial Surety. Our 2 or 3-year packages provide the greatest overall savings and protection, including both fiduciary and cyber protection. Colonial even includes extended coverage to ensure your ERISA bond remains US Department of Labor compliant.
Colonial makes it so easy and reasonable to secure this coverage that you can do it now, right here: Complete Plan Sponsor Package Here.
Colonial Surety Company is in business all across the USA. We are rated “A Excellent” by A.M. Best Company and U.S. Treasury listed.
Serving customers since 1930, Colonial Surety is 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.