A plan sponsor attending her first TPSU (The Plan Sponsor University) meeting held at UC Irvine on the recommendation of a colleague led by Adjunct Lecturer John Spach from NFP discussed how using mandatory group meetings in combination with one on ones is worker well for her 450 employee company in Costa Mesa.
Most of the group meetings are mandatory especially when new features to the company’s 401k plan are introduced like changes in deferral. For example, the company held a mandatory meeting when they instituted 1% auto escalation capped at 10%. But the company does not stop there. They also make one-on-one meetings with their advisors available in a private office which has grown over time to be a very popular feature.
One of the keys to these private meetings is that it is held during working hours as most workers do not have time after work. For many 401k participants, this meeting might be their only access to a financial advisor which can be a key to their financial success not just for their retirement plan but also to help manage other financial issues like debt. Holding mandatory group meetings where employees get to meet and hear from the plan’s advisor in combination with one on one’s is the key.
Though the ideal plan gets people on track to start saving and investing wisely, the “set it and forget it” mentality can be dangerous as engagement in a person’s retirement plan as well as managing their finances especially when they get into retirement can be just as important.
Just like at TPSU, where attendees consistently note that engaging with peers is the most beneficial part of the program after hearing from high quality lecturers not pitching product, employees are more likely to engage when they hear from their peers about the value of one on one meetings. Especially Millennials who are more likely to trust peers than their elders telling them what they should be doing.
