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		Retirement Plan Design: Have You Updated Yours Lately? Many employers have a retirement plan in place for their business to benefit their employees and to create a tax-efficient way to save money for retirement. These plans have names such as 401(k), 403(b), SIMPLE IRA, SEP, Cash Balance or Defined Benefit. But the development of recent trends, including low participation rates, has caused numerous employers to re-evaluate one critical component: their retirement plan design. When evaluating retirement plan design, these companies take into consideration aspects such as contribution amounts and type, number of participants, plan assets, investment options, loans, and administrative complexity. After evaluation, employers are adopting certain new plan design features to address these areas, including “Safe Harbor”, automatic enrollment or target maturity funds. Safe Harbor plans have become popular because they can minimize certain compliance testing and make plan administration easier. Automatic enrollment is becoming more popular and provisions in the Pension Protection Act (passed in August of 2006) have made this feature more attractive to companies. Target maturity funds are being used by many companies as a way to give plan participants professional asset allocation at a reasonable price. The reality for every business is that retirement plan legislation gives each company the flexibility to create the appropriate plan design, and it is critical that each company take the time to explore all of the options. With the right plan design and educational policy, employers have the opportunity to help their workers enjoy a better retirement. For more information on Safe Harbor, automatic enrollment, target maturity funds or other plan design features, please click on the links below, or contact our Retirement Plan division at 919-913-0235. Automatic Enrollment Rules Automatic Enrollment in 401(k) Plan is First Step 401(k) Plans for Small Businesses Safe Harbor 401(k) Chart Seven Hot 401(k) Trends Retirement Planning: Fire, Ready, Aim Questions or comments about this article? Email us at comments@hcwbenefits.com. * * * * * Don't forget to contribute your answer to HCW's Employer Survey Question of the Month at www.hcwbenefits.com! *This month's* question is: "Do you have a benefit strategy that supports your company’s vision?" Go to www.hcwbenefits.com today, give your answer and see how your peers responded! Please Note: If you no longer wish to receive communications of this nature from Hill, Chesson & Woody, please reply to the sender of the email with the word "unsubscribe" in the header. Thank you. Important Notice: Hill, Chesson & Woody does not engage in the practice of law, accounting, or medicine. Therefore, the contents of this communication should not be regarded as a substitute for legal, tax, or medical advice.
May 25, 2007 Hill, Chesson & Woody strives to keep our clients' group decision makers abreast of trends influencing the employee benefits market. Look for Eyes on Benefits to bring you news and information affecting you and your employees. 194 Finley Golf Course Road, Suite 200, Chapel Hill, NC 27517 Phone: 919.403.1986 Fax: 919.913.0237 www.hcwbenefits.com