401k Education and Communication Impacts Participation Rates
401k education and communication can be the catalyst that causes an eligible plan participant to start thinking about retirement in a different light. While an eligible employee has so many job-related duties in the workplace – it can be difficult for some employees to step back and consider themselves being near or at retirement. It is difficult for many individuals to picture themselves 15 or 25 years into the future. What can a company do to stress the importance of saving today? At the conclusion of a Plan Sponsor University (TPSU) Fiduciary Education Program held at the Arizona Christian University in Phoenix Arizona, TPSU Founder and CEO, Fred Barstein spoke with Suzanne, a Human Resources Generalist with responsibility for the 401k Retirement plan. Since Suzanne’s role is at the holding-company level she oversees retirement benefits for multiple companies – all through the structure of a single plan! The organization looked at participation rates and realized there was an opportunity to better connect with the plan’s eligible, but not participating, employees. The organization took an active role in engaging participants through the use of peer-to-peer communication. The message was a simple one – if you are not participating in the plan, you are missing the company match! They also pointed out the benefit of saving early (now) for the not so distant future. This 401k education and communication in the form of a peer-to-peer campaign increased the number of participating employees by a solid 33%.
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