Engage Employees at a 403b – Translating Percentages into Dollars. When it comes to deferral amounts and matches, even simple percentages can be confusing to employees. On the one hand, the deferral percentage can seem like more than they can afford and they do not understand how much money they are leaving on the table by not deferring up to the match.
Learn how the VP of HR of a 403b plan sponsor attending a TPSU program held at Queens College overcame her employees’ reluctance to participate when she translated the deferral percentage into actual dollars. Even better would be to calculate after tax dollars and even include the savers tax credit.
The stretch match in an opportunity for plan sponsors to incent employees to save more by changing a 50% of 6% match, for example, to 25% of 12% without costing the organization more. But these percentages are confusing and need to be put into dollar amounts to resonate with workers.
The VP of HR will also consider re-enrollment, auto-escalation and financial wellness as a result of what she learned at TPSU.
