Too often I find, when reviewing a retirement plan with both participants or the plan sponsor, that 401k’s are under-served by their providers. From having a couple of decent investment options and a bunch of mediocre ones, to participants having very little access to education, help and advice are just of the few of the reasons employees are unsatisfied with their plans. What kind of shape is your plan in?
Here is a survey (provided by the Society for Human Resource Management) you can give your employees to gauge how your 401k of profit sharing plan is doing:
Employee 401k Survey
Are you participating in the 401(k) Plan? Yes No
If yes, what deferral percentage or amount did you elect ____% $_______
If no, please state reason _____________________________
(Those who are participating in the plan should complete the balance of the form)
Do you feel you understand your plan in terms of how much you feel you should be contributing to your account, and how you have invested those contributions to the various investment options within the plan? Yes No
Do you feel that the savings and investment education provided by our vendor are sufficient for your needs?
Yes No If no, what educational information would you like to see added? ____________________________________________________________________________________________
Do you feel the investment options provided are sufficient in terms of both diversification, as well as performance of each of those investment options in the plan? Yes No If no, what other investment options would you like to see added or replaced? ____________________________________________________________________________________________
Do you feel that fund transfers are permitted sufficiently often? Yes No
If no, what frequency would you prefer? ______________________________________________
Do you feel that the administrative fees for funds are competitive? Yes No
If no, please indicate fund(s) with excessive fees. ________________________________________________
If you have had any transaction(s) handled by our provider this year, please indicate the type(s) of transaction.
Change of Information ____ Fund Transfer ____ Withdrawal ___ Loan ____
Please indicate your level of satisfaction with the timeliness and handling of your transaction(s).
Excellent ____ Very satisfied ____ Adequate ____ Unsatisfactory ____
For Adequate and Unsatisfactory responses, please indicate the reason. ____________________________________________________________________________________
Is the Summary Plan Description (SPD) you were provided sufficiently explanatory? Yes No
If no, what areas of the SPD need to be expanded? ________________________________________________
Date: ________ Employee __________________________
This survey is an easy way to see if your plan is helping you and your employees save for their future. Remember, you and your people invest money to have choices later on in life – that is what retirement really means. If you would review your plan (the Dept of Labor recommends this be done every 2-3 years) please give me call at 760-755-7799 or email me at firstname.lastname@example.org! I will post short easy 30 second tips on various aspects on 401k’s every few weeks so check back often. Also, check out my Facebook page Ward Capital Management and like the page please! Chris