If you look at your company retirement plan as a tool to attract the best talent, now is a great time to review your options for improvement. As 2010 begins, it is important to keep in mind that a required restatement period for some retirement plans under the 2001 Economic Growth & Tax Relief Reconciliation Act must be done by April 30, 2010.
There are always many choices to optimize what you offer employees, but with this restatement of plan documents, there may be new options, including: rewarding different employees at different levels, different retirement benefits, or retirement dates for different classes of employees, or safe-harbor options to avoid top-heavy plans where high-income earners’ deferrals are limited because lower-income earners are not participating.
Now may be the time to evaluate your plan to save expenses or change the financial commitment required by your firm because of the economy. On the other hand, a lot of talented people are looking for work right now, and an excellent way to differentiate yourself, without too much cost, is to tailor your plan to attract the best talent. Review your options with your adviser or a local pension administration firm soon.
Dave Shepherd, Sr.
President and Founder
Retirement Financial Services
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