The pandemic has demonstrated how much people need and want to save—and the valuable role employers have in helping them do so. Protect your plan in 2021!
Retirement Savings Provide Relief
The disruptions of 2020 have caused some Americans to draw on retirement savings from employer-sponsored plans. Thankfully, they had these funds to fall back on. Then too, many people were able to leave their plans intact, striving toward a healthy retirement. As The New York Times has reported:
Since the pandemic began rippling through the economy in March, more than 2.1 million Americans have pulled money from retirement plans at the five largest 401(k) plan administrators — Fidelity, Empower Retirement, Vanguard, Alight Solutions and Principal. These workers, especially those in hard-hit industries like transportation, manufacturing and health care, have been helped by more flexible withdrawal rules created by the coronavirus relief legislation known as the CARES Act.
Even with millions unemployed and the economy’s recovery shaky at best, that’s only about 5 percent of the eligible 401(k) and 403(b) clients across all of those companies. But that’s still higher than in a more typical year, when many participants can still generally withdraw money for hardships, albeit under a stricter set of rules.
Clearly, employees value employer sponsored savings opportunities, whether funds turn out to be needed sooner than planned or can continue to build toward retirement. As a plan sponsor, continue doing everything you can to encourage—and protect employee savings. Headed into a new year, be sure that your required ERISA fidelity bond is up to date—and properly covers your plan. Let Colonial Surety Company make it easy for you with our user-friendly, digital and direct service. You can easily and quickly purchase your bonds and related insurance coverage online.
Colonial’s unique, comprehensive and affordable packages arm plan sponsors with:
the ERISA bond required to protect the assets of the retirement plan from theft; Cyber Liability coverage to safeguard your company and plan from covered losses and expenses in the event of a cyber breach; and, Fiduciary Liability coverage to protect you and your assets from personal liability.
Employers Benefit From Retirement Plans Too
Retirement plans turn out not just to be important for employees—they are important for the company too! Sponsoring a retirement plan can be very important to your company’s overall reputation—and ability to recruit and retain talented employees. As Business News Daily sums up:
There are many major benefits in offering retirement benefits to your employees, from increasing productivity to attracting new talent. An employee retirement plan can be the backbone of your benefits package and an essential ingredient of a positive company culture that increases employees’ general well-being.
Make 2021 Great For Everyone Counting on Your Retirement Plan
Lawmakers in Washington have been in agreement about the importance of helping all Americans save for retirement through 401(k) plans. 2021 rings in the implementation of a variety of new legislation aimed at propelling savings. Actions to increase savings include: enabling automatic enrollment; expediting part-time worker participation; and, providing “catch-up contribution” opportunities for employees 60 and older.
As you keep up with new regulations, don’t lose track of the fundamentals of keeping the hard earned savings of your employees safe. You must have an ERISA fidelity bond, and only companies named on the Department of Treasury’s listing of approved sureties are able to provide these bonds. A national leader in the field, Colonial Surety Company is not only U.S. Treasury listed, but also rated “A Excellent” by A.M. Best Company.
Get 2021 off to a great start: Colonial Surety Company even includes retroactive ERISA fidelity bond coverage for past years when the plan was not covered. Colonial makes it easy, direct and instant: Obtain your ERISA Bond Package Here Now!