Benchmarking Plan Design

Do you get questions from your employees and new recruits about your 401(k) or 403(b) plan? Do you know how your plan stacks up against your competition?

That’s what today’s video is about.

But first, let me ask you a question.

The real question is, how can you as a company that sponsors a 401k or 403b plan, turn your plan from a liability into an asset that gives you an advantage in the marketplace, and become a 401k superhero to your employees?

That is the question, and these videos will give you the answers. I’m Jonathon Schultheiss and welcome to the Ultimate 401k Advantage videos.

Step 4 of the Ultimate 401(k) Advantage process is to benchmark your plan. When I say benchmark your plan, most companies think about fees and expenses. But, there’s something that might be just as important and that’s your plan design.

I believe your 401k or 403b is more than just a fiduciary liability, it’s an asset that could give you a competitive advantage in the marketplace. And to see if it is an advantage, wouldn’t it be nice if you knew how your plan stacks up against your competitors?

Let’s talk about benchmarking your 401k or 403b plan design.

Here are some things that you should benchmark on your plan design.

• How your match compares to your industry

Wouldn’t it be nice to know if you have a better match that your competitors? And if your match is not as good, maybe you change it or have a way to address it.

You may even consider stretching the match. See my video on stretching your match for more details.

• How does your waiting period compare to your industry

Do employees have to wait for a year to enroll in your plan and does you competitors let their participants enroll right away? What if you know your competitors made new employees wait for a year and you let them in your plan immediately? Wouldn’t that be an advantage?

• How does your vesting compare and is your loans and distributions policy different than your competitors?

These are just a few things that you could consider when benchmarking your plan design. Knowing these things could help you turn you plan from a liability into an asset and help you gain the Ultimate 401k Advantage for your company.

Want to learn more about this?

Then click on the link above or visit becomeA401kSuperhero.com/FREEBOOK to request a free copy of my book, The Ultimate 401k Advantage, The 5 Step Process to Becoming a 401k Superhero to Your Employees today.