Why partner with a retirement plan expert that specializes in ERISA compliance, and can relieve a significant portion of your fiduciary liability?
In 2013 the Department of Labor (DOL) conducted 3,677 retirement plan audits. In 73% of these audits, monetary fines, corrective actions or lawsuits were filed. The total amount of fines collected thus far as a result of these 2013 actions is $181 million. Even if your company is in the 27% that pass, a typical audit takes two weeks, which is time spent away from your business.
It is estimated that only 11% of 65-year-olds, will be financially “retirement ready” in 2014. This can significantly affect the value of your company. How? One of our consultants recently worked with a company to reinstate its pension. Why? A deal to sell the company collapsed after a review of their existing 401(k). Their average employee was 53 years old, with an average current plan balance of less than $40,000. The acquirer’s comment, “In 15 years, we’ll have a workforce that’s 65 to 70 years old facing end of life diseases, who can’t afford to retire. Productivity will collapse.” Our consultant worked with the company to borrow a significant sum to fund the old pension to secure the company’s employees retirement so the company could be sold. Your employee’s apathy towards savings not only hurts them but you as well.