401k Matching Formula Motivates Seasoned Employees
401k Matching Formulas can be used creatively to help employers, in their efforts, to help employees. Rewarding employees who have longevity with a company has been done for years in the amount of vacation time or personal an employee receives. Treating longer-term employees, a little different and better, is not a new concept. However, designing a 401k matching formula based upon tenure on the job is rare. How can a 401k plan sponsor take advantage of this motivational tool? The Plan Sponsor University (TPSU) Founder and CEO, Fred Barstein spoke with Sarah, concerning the 401k matching formula used at her company’s 401k retirement plan. The plan sponsor and Fred met at the conclusion of the TPSU Fiduciary Education Program held on campus at the University of Oregon. Sarah shared with Fred how her employer has been able to structure the retirement plan match to benefit the longer-term employees. Watch this video interview to learn how a company can structure a 401k matching formula in a more creative way.